User Account

All Pages

What amount of interest expense should shak report

Assignment Help Accounting Basics
Reference no: EM132731217

Problem 1: On January 1, 2019, Shak, Inc. signed a noncancelable lease for a sneaker shining machine. The machine has an estimated useful life of nine years. The term of the lease is a six-year term with title passing to Shak at the end of the lease. The agreement called for annual payments of P40,000 starting at the end of the first year. Assume aggregate lease payments were determined to have a present value of P200,000, based on implicit interest of 12 percent. What amount of interest expense should Shak report in its 2019 income statement from this lease transaction?

Reference no: EM132731217

Questions Cloud

How much do need to deposit in a bank account today : How much do you need to deposit in a bank account today? Assume that the annual interest rate is 5 % compounded annually.
Question - Recording Entries for Common Stock Issuance : Question - Recording Entries for Common Stock Issuance - Max Inc. issued 15,000 shares of $1 par value common stock for $20 per share on January 1, 2020
Describe the websites or multimedia resources : Describe the websites, applications, or multimedia resources. Describe how health care providers use these resources to enhance their products and services.
How much should epson record as depreciation expense : January 2, 2017, of P864,000 based on an appropriate rate of interest. For 2018, how much should Epson record as depreciation expense for the leased machine?
What amount of interest expense should shak report : Based on implicit interest of 12 percent. What amount of interest expense should Shak report in its 2019 income statement from this lease transaction?
Calculate the selling price of the bonds : 33M Corp. authorized and issued $340,000, 6%, 20-year bonds payable on January 1, 2020. Calculate the selling price of the bonds
Future change in the health care system : How can case managers effect future change in the health care system? Be specific.
How did egyptians prepare the body of the pharaoh for burial : How did Egyptians prepare the body of the pharaoh for burial? Why were these procedures undertaken? What is the topic of your research paper? Please choose.
What is the expected current share price : Assuming dividends are NOT expected to grow in the future. What is the expected current share price given this information

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