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Use the information in RE21 3. Prepare the journal entries that Richie Company (the lessor) would make in the first year of the lease assuming the lease is classified as a sales type lease. Assume that the lessee is required to make payments on December 31 each year. Also assume that Richie had purchased the equipment at a cost of $200,000.In RE21 3, Garvey Company (the lessee) entered into an equipment lease with Richie Company (the lessor) on January 1 of Year 1. Use the following information to decide whether this lease qualifies as an operating or capital lease for Garvey, and give an explanation using the four classification criteria.
1. The equipment reverts back to the lessor at the end of the lease, and there is no bargain purchase option.2. The lease term is five years and requires Garvey to make annual payments of $65,949.37 at the end of each year.3. The discount rate is 10%, which is implicit in the lease. Garvey knows this, and this rate is lower than its incremental borrowing rate.4. The fair value of the equipment at the lease inception is $250,000. The present value of an ordinary annuity of five payments of $65,949.37 each at 10% is $250,000.5. The equipment has an estimated economic life of seven years and has zero residual value at the end of this time. Straight line depreciation is used for similar assets.
san jose medical center has a single operating room that isused by local physicians to perform surgical procedures.
At the date of transfer, Demers records carried the equipment at a cost of $120,000 less accumulated depreciation of $48,000. Straight-line depreciation is used. Demers reported net income of $28,000 and $32,000 for 2006 and 2007, respectively.
can you help me to answer these question? ltbrgti need to complete it on 1492014 so can you do it quicklu for me pls?
adams products inc. manufactures a product it sells for 25. adams sells all of the 24000 units per year it is capable
explain what type of audit report is required when the companys financial statements contain a material and pervasive
1. equipment with a cost of 220000 has an estimated residual value of 30000 and an estimated life of 10 years or 19000
in 2013 maria who files as a head of household reported regular taxable income of 115000. she itemized her deductions
on january 2 2014 johnson inc. sold used equipment to rencher company for 3000 down and three annual payments of 9500
"The production department started the month with the beginning goods in process inventory of $350,000. During the month, it was assigned the following costs: direct materials, $192,000; direct labor, $90,000; overhead applied at the rate of 30% o..
dorman co. sold merchandise to smith co. on account 18000 terms 215 net 45. the cost of the merchandise sold is 15500.
Fairfield company management has budgeted the following amoumts for its next fiscal year total fixed expenses 832,500, sale price per unit 40, variable expenses per unit25 what will happen to the breakeven point in units if fairfield can reduce fi..
bck inc. and rtk inc. are owned by the same family. bcks marginal tax rate is 25 and rtks is 40. bck is about to incur
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