Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Lessee Comapny enters into a lease agreement on July 1, 2010, for equipment. The following data are relevant to lease agreement. 1. The term of the non-cancelable lease is 10 years, with no renewal option. Payments of $120,000 are due on June 30 of each year. 2. The equipment has an economic life of 12 years. 3. Lessee depreciates similar machinery it owns on the sum-of-the-years'-digits basis. 4. The lessee pays all executory costs. The residual value of the equipment is expected to be $50,000, but not guaranteed. 5. Lessee's incremental borrowing rateis 15% per year.Lessee is aware that the lessor used an implicit rate of 12% in computing the lease payments. Collectibility of lease payments is reasonably predictable and no important uncertainties surround the amount of costs yet to be incurred by the lessor. INSTRUCTIONS: (a) Indicate the type of lease to the Lessee and Lessor. (b) Prepare the journal entries on the books of lessee and lessor through December 31, 2011, and at the end of the lease assuming that the actual residual value was 1) $65,000 and 2)$40,000. (c) Assuming that the residual value is guranteed, prepare the journal entries on the books of lessee and lessor through December 31, 2011, and at the end of the lease assuming that the actual residual value was 1) $65,000 and 2) $40,000.
In 2007, Delaney Company had revenues of $180,000 for book purposes and $150,000 for tax purposes. Delaney also had expenses of $100,000 for both book and tax purposes. If Delaney has a 35% tax rate, what is Delaney's income tax payable for 2007?
Johnson Auto Body uses a job order cost system. Overhead is applied to jobs on the basis of direct labor hours. During the current period, was charged $425 in direct materials, $475 in direct labor, and $190 in overhead. If direct labor costs an a..
An amusement park spends $350,000 each year in consulting services for ride inspection. New actuator element technology enables engineers to simulate complex computer-controlled movements in any direction.
Decide if either of these actions is warranted in your particular case and state why you think that way.
The proper amount to be reported on Imperial Foods' balance sheet for cash at December 31, year 1 is:
The spectrometer would have no effect on revenues, but it is expected to save the firm $25,000 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 40%.
Compute the depreciation deduction for the computer system in 2006 and the cost recovery recapture. Assume that in 2004, Elaine had instead expensed under Section 179 the cost of the computer system. Compute the cost recovery recapture in 2006.
A business issued a 120-day, 6% note for $10,000 to a creditor on account. The company uses a 360-day year for interest calculations. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, includ..
Keshena Co. borrows $240,000 cash on November 1, 2009, by signing a 180-day, 10% note with a face value of $240,000. On what date does this note mature?
Natali Vision sells 5,000 pairs of sunglasses per month at $40 each with a desired profit margin of 25%. Fixed costs are $20,000. What is the variable cost per unit?
A company had net income of $242,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased $2000 and $4000, respectively. T..
The accountant of Whitney Houston Shoe Co. has compiled the following information from the company's records as a basis for an income statement for the year ended December 31, 2007- Prepare a multiple-step income statement. Prepare a single-step in..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd