Present value of minimum lease payments

Assignment Help Accounting Basics

Reference no: EM13143962

Hooper corporation signed a ten year capital lease on January 1, 2010. The lease requires annual payments of $8,000 every December 31.

Assuming an interest rate of 9%, calculate the present value of the minimum lease payments.

Explain why the value of the leased asset and the accompanying lease obligation are not reported on the balance sheet initially at $80,000.00

Reference no: EM13143962

Questions Cloud

Trial balance and journalize the adjusting entry : If Allowance for Doubtful Accounts has a credit balance of $2,201 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 12% of accounts receivable.

What is the chemical formula and name of this acid : A chemist dissolves 0.9 g of an unknown monoprotic (one acidic H) acid in water. She finds that 14.6 mL of 0.426 M NaOH are required to neutralize the acid.

Estimate the true average time to within given minute : If they would like to estimate the true average time to within 1.9 minute (with 95% confidence) what sample size should they use? (remember to round to the next largest integer.)

What is the molarity of the base : When titrating 0.15 M HCl with a calcium hydroxide solution of unknown concentration, 35 mL of acid are required to neutralize 25 mL of the base.

Present value of minimum lease payments : Explain why the value of the leased asset and the accompanying lease obligation are not reported on the balance sheet initially at $80,000.00

Problem related to after-tax income : Ivan Company has a goal of earning $75,000 after-tax income. Ivan would need to pay $20,000 of income taxes at the target level of income. The contribution margin ratio is 39%. What amount of dollar sales must be achieved to reach the goal if fixe..

Explain most important alkaloid derived from cinchona bark : Quinine (C20H24N2O2) is the most important alkaloid derived from cinchona bark. It is used as an antimalarial drug.

Does the diet appear to have practical significance : Use a significance level to test the claim that the mean weight loss is greater than 0. Based on these results does the diet appear to be effective. Does the diet appear to have practical significance.

What is the concentration of the base : 78 mL of 2.5 M phosphoric acid is neutralized with 500 mL of potassium hydroxide. What is the concentration of the base?

User Account

All Pages