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Summer Fun Inc. (lessor) agreed to lease an icecream truck to Icecream Party LLC (lessee) on September 30, 2020. The truck originally cost Summer Fun Inc. $115,000. The lease had a 6-year term and includes an implicit interest rate of 2% (8% annually). Icecream Party was given the option to purchase the truck on September 29, 2024 (4 years after the lease start date) for $28,000 when the fair value was expected to be $36,000. The first lease payment of $4,000 was due on September 30, 2020 and payments are due each quarter (December 31, March 31 and June 30) thereafter. Please answer the following questions. Problem A) What type of lease is this and why?
Problem B) Record all appropriate journal entries for Summer Fun Inc. (lessor) and Icecream Party LLC (lessee) on September 30, 2020. Please clearly label your entries.
Problem C) Record all appropriate journal entries for Summer Fun Inc. (lessor) and Icecream Party LLC (lessee) on December 31, 2020. Please clearly label your entries.
Bullock Mining has a 12 percent required return on all of its gold mines. Calculate discounted payback period
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Use four methods (arithmetic average growth rate, compound average growth rate, regression, and earnings retention model)
additional $50,000 to the account If the account continues to earn 4% interest, how much money will the company have in its account five years from now?
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The following information was taken from the financial statements of Monarch Resources Inc. for December 31 of the current year: The net income was $1,300,000, and the declared dividends on the common stock were $460,000 for the current year. The mar..
Which of the following is true of a Premium on Bonds Payable account?
Prepare the operating activities section of the statement of cash flows using the indirect method, i.e. prepare reconciliation of profit to cash provided.
What theoretical justification is there for Widjaja Companys use of the percentage-of-completion method and how would progress billings be accounted for? Include in your discussion the classification of progress billings in Widjaja Company financia..
Applying differential analysis to the situation, should Jansung Company make or buy the phones? Jansung Company manufactures 5,000 telephones per year.
LeCompte Learning Solutions, What is LeCompte's optimal capital structure, and what is the firm's cost of capital at this optimal capital structure?
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