User Account

All Pages

What amount of income should Cary report from this lease

Assignment Help Accounting Basics
Reference no: EM132487452

Question - Cary Corp. manufactures equipment for sale or lease. On December 31, 2020, Cary leased equipment to Grant Sales Inc. for five years, with ownership of the equipment being transferred to Grant at the end of the lease. Annual lease payments are $252,000 (including $12,000 executory costs) and are due on December 31 of each year. The first payment was made on December 31, 2020. Collectibility of the remaining lease payments is reasonably assured, and there are no additional costs (other than executory costs) to be incurred by Cary. The normal sales price of the equipment (fair value) is $924,000, and Cary's cost is $720,000. The present value of the lease payments is equal to the fair value of the equipment.

For the year ended December 31, 2020, what amount of income should Cary report from this lease?

A. $264,000

B. $396,000

C. $204,000

D. $276,000

Reference no: EM132487452

Questions Cloud

What are contingent liabilities : Determine What are contingent liabilities? Determine What is a profitability ratio? Determine What is a classified balance sheet?
What are the styles of negotiation : DEFINITION: a brief definition of the key term followed by the APA reference for the term; this does not count in the word requirement.
Public health-related community relations challenge : Identify an organization that has had to deal with a public health-related community relations challenge.
Examine and research the chronic disease : Examine and research 1 chronic disease (e.g., heart disease, stroke, cancer, diabetes, arthritis, obesity) and write a paper that discusses the following.
What amount of income should Cary report from this lease : Cary Corp. manufactures equipment for sale or lease. For the year ended December 31, 2020, what amount of income should Cary report from this lease
Explain what the stark law is : a. Explain what the Stark law is. b. Discuss what you would do in this situation.
What kind of information does the source provide : What kind of information does the source provide? (original research, review, or meta-analysis?) What are the parameters of the study?
What amount would be recorded as Lease Receivable : If Dietrich records this lease as a finance lease, what amount would be recorded as Lease Receivable at the inception of the lease
How does the given affect a public health practice : Review the "Correspondence of the 12 Ethical Principles with the 10 Essential Public Health Services" section of the assigned reading.

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