Original cost of the computer to stark

Assignment Help Accounting Basics

Reference no: EM13122531

Jill norris is presently leasing a small business computer from stark office equipment company. the lease requires 10 annual payments of $2,500 at the end of each year and provides the lessor (stark) with an 8% return on its investment.

Assuming the computer has a ten-year life and will have no salvage value at the expiration of the lease, what was the original cost (present value) of the computer to Stark?

Reference no: EM13122531

Questions Cloud

Prepare in general journal form the workpaper entries : Prepare in general journal form the workpaper entries that would be made int he preparation of a consolidated statements workpaper.

What was the account balance at the end of specific year : At the end of the sixth year, the account balance was transferred to a bank paying 10%, and annual deposits of $80,000 were made at the end of each year from the seventh through the tenth years. what was the account balance at the end of the tenth..

Illustrate what is the amount of character of butte gain : Butte sold a machine to a machine dealer for $50,000. Butte bought the machine for $55,000 several years ago and has claimed $12,500 of depreciation expense on the machine. Illustrate what is the amount of character of Butte's gain or loss?

Effect on the tax basis of each partner partnership : orders stationery and other office supplies in the amount of $300. Before the partnership pays for the supplies but after the partnership has taken title and possession of the supplies, is there any effect on the tax basis of each partner's partne..

Original cost of the computer to stark : Assuming the computer has a ten-year life and will have no salvage value at the expiration of the lease, what was the original cost (present value) of the computer to Stark?

Illustrate what is the price of this stock today given : after which the company will keep a constant growth rate forever. Illustrate what is the price of this stock today given a required return of 12 percent?

Flights actually take place and cancellations : If 82% of scheduled flights actually take place and cancellations are independent events, what is the probability that 3 separate flights will take place?

Researching a topic : This article appears to provide relevant information, however, there are too many ads linked to this site to make this article credible. The article given on this website does not provide recent information, the website contains too many links and ap..

Describe the segmenting and pre-training principles : Describe the segmenting and pre-training principles. Evaluate which learners would benefit most from pre-training. Finally, briefly describe a pre-training exercise for your JIT lesson and why you believe it will benefit those learners who n..

User Account

All Pages