Total obligation under capital leases

Assignment Help Accounting Basics

Reference no: EM13148744

On December 31, 2011, Lang Corporation leased a ship from Fort Company for an eight-year period expiring December 30, 2019. Equal annual payments of $200,000 are due on December 31 of each year, beginning with December 31, 2011. The lease is properly classified as a capital lease on Lang 's books. The present value at December 31, 2011 of the eight lease payments over the lease term discounted at 10% is $1,173,685. Assuming all payments are made on time, the amount that should be reported by Lang Corporation as the total obligation under capital leases on its December 31, 2012 balance sheet is

$1,000,159.

$1,200,000.

$871,054.

$1,091,054.

Reference no: EM13148744

Questions Cloud

How many moles of ethylene glycol should be added : how many moles of ethylene glycol should be added to the radiator to lower the freezing point of the water from 0 degrees celcius to -18 degrees celcius?

Write down the cross and explain the final results : In dogs, dark coat (D) is dominant over albino (d) and short hair (S) is dominant over long hair (s). After crossing dogs with dark and short hair with albino dogs with long hair, in F2 a breeder got 89 dogs with dark and short hair, 31 dark, long..

Determine the hillary income : Bill receives interest income of $5,000 from bonds purchased with his salary after marriage. Bill and Hillary receive $10,000 dividend income from stock they purchased jointly. Hillary's income would be ??

What concerns might you have about such an approach : The economy has recently turned around, and one of your colleagues suggests that you could hire 25 people for $50,000 per employee to do the sales job as independent agents at a cost of goods sold (COGS) of only 0.5%. What concerns might you have abo..

Total obligation under capital leases : The present value at December 31, 2011 of the eight lease payments over the lease term discounted at 10% is $1,173,685. Assuming all payments are made on time, the amount that should be reported by Lang Corporation as the total obligation under ca..

Find probability that randomly selected jar will have fill : Estimate the probability that a randomly selected jar will have a fill, x, that is out of specification. Assume that the process is in control and that the population of all jar fills is normally distributed.

For what proportion of these corporations the rate of return : For what proportion of these corporations the rate of return negative? C. For what proportion of these corporation was the rate of return between 5% and 15%?

Calculate the delta h of this reaction : When 28.0 ml of 0.500 M H2SO4 is added to 28.0 ml of 1.00 M KOH in a coffee-cup calorimeter at 23.50 degrees Celsius, the temperature rises to 30.17 degrees Celsius. Calculate the delta H of this reaction.

What specific biotechnology application did you choose : Research how a SPECIFIC biotechnology application within the above GENERAL examples (or ones not listed above) is used today. Example: Insulin production in bacteria is an example under the general topic of recombinant organisms.

User Account

All Pages