Quattro incremental borrowing rate

Assignment Help Accounting Basics

Reference no: EM13154420

Quattro Corporation signed a lease from Cinco Leasing Company of July 1 Year 1, for equipment having a five-year useful life. The lease does not include any option to purchase the equipment at the end of the four-year lease term, nor does it include a provision for ownership transfer. Five equal payments of $10,000 per year are required by the term of the lease, with the first payment due upon signing. Quattro's incremental borrowing rate is 8%, but its implicit interest rate is unknown.

Present value of an annuity at 8% for 5 years = 3.993
Present value of an annuity at 8% for 4 years = 3.312

On its December 31, 20X3 financial statements, Quatto would display the following amounts in the indicated accounts:

Equipment ; Accumulated Depreciation; Lease Payable

a) $0;$0;$0

b) $43,120; $5,390; $33,120

c) $43,120; $4,312; $33,120

d) $49,930; $6,241; $39,930

Reference no: EM13154420

Questions Cloud

How many grams of sodium oxide will be formed : how many grams of sodium oxide will be formed if 46 grams of sodium are used in the reaction. 4Na + O2 yields 2Na2O

Define what is the concentration of the hno solution : What is the concentration of the HNO3 solution? (b) How many moles of NaOH were in excess after the first addition?

Net deferred incoem taxes on balance sheet : Assuming that the enacted tax rate is 30% in both 2010 and 2011 and that krause paid 780,000 in income taxes in 2010, the amount reported as the net deferred incoem taxes on krauses balance sheet at dec 31 2010 should be:

Find degrees of freedom for the with-in dfw : There are 72 data values altogether. The degrees of freedom for the Between(dfB) and the degrees of freedom for the With-in (dfW) are?

Quattro incremental borrowing rate : Five equal payments of $10,000 per year are required by the term of the lease, with the first payment due upon signing. Quattro's incremental borrowing rate is 8%, but its implicit interest rate is unknown.

Calculate the vapor pressures of pure a and b : at 84 degrees C the total vapor pressure of a solution contains 1.2 moles A and 2.3 moles B is 331 mmHg. Upon the addition of another mole of B to the solution, the vapor pressure increasing to 347mmHg.

Aggregate supply curve and phillips curve for the economy : Explain how one might interpret periods where these measures are significantly different from each other as periods during which supply shocks occurred.

Calculate the rate constant and the half-life : Calculate: a.the rate constant b.the half-life at 500 C c.how long will it take to decompose 65% of the drug?

Determine if this was a good investment on after-tax basis : The company ises MACRS depreciation and its marginal tax rate is life of 5 years). The 10 cars were sold at the ending a MARR of 10% and using NPW, determine if this was a good investment on an after-tax basis.

User Account

All Pages