User Account

All Pages

The useful life of the equipment is five years

Assignment Help Accounting Basics
Reference no: EM131005194

Werner Chemical, Inc., leased a protein analyzer on September 30, 2011. The five-year lease agreement calls for Werner to make quarterly lease payments of $391,548, payable each September 30, December 31, March 31, June 30, with the first payment at September 30, 2011. Werner's incremental borrowing rate is 12%. Depreciation is recorded on a straight-line basis at the end of each fiscal year. The useful life of the equipment is five years.

Required:

1. Determine the present value of the lease payments at September 30, 2011 (to the nearest $000).

2. What pretax amounts related to the lease would Werner report in its balance sheet at December 31, 2011?

3. What pretax amounts related to the lease would Werner report in its income statement for the year ended December 31, 2011?

4. What pretax amounts related to the lease would Werner report in its statement of cash flows for the year ended December 31, 2011?

Reference no: EM131005194

Questions Cloud

Describe what is already known in the general literature : Literature Review: It is here that you describe what is already known in the general literature about the issue and the question that you are proposing
Purely financial transactions are excluded : GDP is designed to measure what is produced or created over the current time period? Why Existing assets or property that sold or transferred, including used items, are not counted? Discuss and explain why the following purely financial transactions ..
Write a vhdl module for an 8-bit accumulator for subtraction : If A = B = 1, the value of the data inputs D are subtracted from the accumulator. If A = 1 and B = o, the value of the data inputs D are loaded directly into the register. If A = o and B = 1, the accumulator should shift right with zero fill. I..
What are the social consequences of this changing technology : What were the most important aspects of the computer and electronics revolution?
The useful life of the equipment is five years : What pretax amounts related to the lease would Werner report in its statement of cash flows for the year ended December 31, 2011?
The elasticity of demand for trips if a non-toll bridge : Suppose you are the administrator in charge of setting the toll for crossing a toll bridge across a river. The current toll is $1 per trip and at that toll 1000 trips per hour are taken across the bridge. If the price elasticity of demand for trips i..
Problem regarding the npv of the new plant : What is the NPV of the new plant? Assume that PC has a 35 percent tax rate.
Write a vhdl module for a 4-bit up-down counter : Write a VHDL module for a 4-bit up-down counter. If En = o, the counter will hold its state.If En = 1, the counter will count up if U = 1 or down if U = o. The counter should also have an asynchronous active-low clear signal ClrN.
Discuss problem-solving techniques : Discuss 3-4 problem-solving techniques. Discuss 2 problem-solving techniques that work best for you. Discuss 1 example of how you used those techniques in the past to help you solve a problem or problems. Discuss 3-4 ways you can improve your problem..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd