Reference no: EM133087178
Questions -
Q1. On August 1, 2021, Dani Corporation leased a machine to Sam Corporation for a 6-year period requiring payments of $100,000 at the end of each year. The machine cost $480,000, with an economic life of 8 years and no residual value. Dani's implicit interest rate is 10% and present value factors are as follows: Present value of annuity due of P1 at 10% for 6 periods - 4.791; Present value of an annuity of P1 at 10% for 8 periods - 5.868. Dani recorded the lease as a direct financing lease. What amount is the gross lease receivable account balance at the inception of the lease?
Q2. At the beginning of 2020, Valo Corporation leased an equipment with the following information: Annual rental payable at the end of each year - $450,000; residual value guarantee - $50,000; Lease incentive received - $20,000; Lease term - 4 years; Useful life of the equipment - 8 years; implicit interest rate - 10%; present value of an ordinary annuity of 1 at 10% for 4 periods - 3.17; present value of 1 at 10% for 4 periods - 0.68. How much is the cost of right of use asset?
Q3. On January 1, 2021, Dom Company purchased investment securities for $1,200,000. The securities are classified as trading. By December 31, 2021, the securities had a fair value of $1,680,000 but had not yet been sold. The company recognized a $320,000 restructuring charge during the year. The restructuring charge is composed of an impairment write-down on a manufacturing facility. Tax rules do not allow a deduction for the write-down unless the facility is actually sold. The facility was not sold by the end of the year. Excluding the trading securities and the restructuring the charge, income before taxes for the year was $4,000,000. The income tax rate for the current year and future years is 30%. How much is Dom's current tax expense?
Q4. On January 1, 2021, Roma Corporation received $107,720 for a $100,000 face amount, 12% bond, a price that yields 10%. The bonds pay interest semi-annually. The entity elects the fair value option for valuing financial liabilities. On December 31, 2021, the fair value of the bond is determined to be $106,460. The entity recognized interest expense of $12,000 in the 2021 income statement. How much was the gain or loss recognized in the income statement to report this bond at fair value?
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Compliance with standard operating procedures
: After working as a manufacturing engineer for eight years, Rianna Guevara recently took on a new job with a competitor. In this new role, she would be in charge
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Prepare all the appropriate journal entries
: Wren sold the machine for $24,000, cash on January 1m 2022. Prepare all the appropriate journal entries and post them to the ledger
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What is the amount of profit on the sale
: The lease is appropriately accounted for as a sales-type lease. The present value of the lease payments is 3,300,000. What is the amount of profit on the sale
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Arguments against the drug test cogent
: All existing employees would be tested whenever there was a sudden, unexplained, or sustained decline in their job performance and/or attendance.
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What amount is the gross lease receivable account balance
: Dani recorded the lease as a direct financing lease. What amount is the gross lease receivable account balance at the inception of the lease
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How you could make your patients feel welcome
: Explain how you could make your patients feel welcome, respected and important.
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What have been the key success factors for toyota
: Toyota Motor Corporation is Japan's leading carmaker. The company has international existence in more than 170 countries across the globe.
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Compute the investor share in the profit
: The inventory is unsold by the investor on December 31, 2X19. Ignoring income tax, compute the investor's share in the profit of the associate for 2X19
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Project proposal for a consultancy project
: What will the business be able to do after the project is done and Identify risks that you may incur that could impede you from achieve your intended aims
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