User Account

All Pages

What amount of interest revenue from the lease should farm

Assignment Help Financial Management
Reference no: EM132324947

Question

Farm Co. leased equipment to Union Co. on July 1, 2017, and properly recorded the sales-type lease at $141000, the present value of the lease payments discounted at 10%. The first of 8 annual lease payments of $30000 due at the beginning of each year of the lease term was received and recorded on July 3, 2017. Farm had purchased the equipment for $145000. What amount of interest revenue from the lease should Farm report in its 2017 income statement?

Reference no: EM132324947

Questions Cloud

Consumption-investment-government spending : Which component of AD do you think your demand for higher education affects the most, Consumption, Investment, Government spending, or Net Export and why?
Calculate the total assets reported on bologna balance sheet : Using the information in the table, calculate the total assets reported on Bologna's balance sheet for the period.
Calculate the companys reported net income for the period : Service Revenue 7,000 Salaries Expense 500 Utilities Expense 1,000 Totals$16,900 $16,900. Calculate the company's reported net income for the period.
Explain work safe duty : HUMAN RESOURCE MANAGEMENT AND LAW ASSESSMENT - Essay writing. Topic - Work Safe. You need to explain work safe duty
What amount of interest revenue from the lease should farm : Farm Co. leased equipment to Union Co. on July 1, 2017, and properly recorded the sales-type lease at $141000, the present value of the lease payments.
How does employee motivation and satisfaction : How does employee motivation and satisfaction help the administrator's and supervisors' goals of achieving harmony within the facility.
What would you have done differently in terms of scope : You have now delivered the project to your customer ahead of schedule, but slightly over budget. Now, it is time to reflect on what went well.
What are the different policy tools the fed uses : What are the different policy tools the fed uses to address significant economic problem? What problems can inflation cause in an economy?
What might be an example of a more elastic good : What might be an example of a more elastic good? What might be an example of a more inelastic good? Explain why.

Reviews

Write a Review

Financial Management Questions & Answers

  Effective costs of trade credit to nondiscount customers

Grunewald Industries sells on terms of 3/10, net 50. Gross sales last year were $4,131,000, and accounts receivable averaged $482,000. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of ..

  Determine the impact on share price

REH Corporation's most recent dividend was $2.42 per share, its expected annual rate of divident growth is 5%, and the required return is now 15%. A variety of proposals are being considered by management to redirect the firm's activities. Determine ..

  What is price of these three bonds in dollars

If the Treasury and corporate bonds have a par value of $1,000 and municipal bond has a par value of $5,000, what is the price of these three bonds in dollars?

  How much money did it cost to buy these shares

You would like to buy shares of Sirius Satellite Radio (SIRI). The current ask and bid quotes are $4.46 and $4.43, respectively. You place a market buy order for 660 shares that executes at these quoted prices. How much money did it cost to buy these..

  Calculate the total cost for both options-leasing vs. buying

Calculate the total cost for both options. Leasing vs. buying: which is the best option for your small business and why?

  The overall cost of financing and the repayment structures

You work in the Origination team of a global investment bank. The overall cost of financing. The repayment structures.

  Estimate the cost of capital

Caballos, Inc., has a debt to capital ratio of 12%, a beta of 1.97 and a pre-tax cost of debt of 7.2%. Estimate the Cost of Capital.

  What would be the new price for each bond

If the market rate of interest on each bond fell from 10 percent to 7 percent and the durations found in part (a) remained constant, what would be the new price for each bond?

  Make a recommendation for a buy hold or sell strategy

Make a recommendation for a buy, hold, or sell strategy for the next day's trading activity. Provide a rationale for your recommendation.

  Analyzing two-stock portfolio that consists of utility stock

Emmy is analyzing a two-stock portfolio that consists of a utility stock and a commodity stock.

  Describe municipal bonds

Describe Municipal bonds, how are they used by government and municipalities, also how do they work for clients accounts.

  Shareholders as annual dividend

Pete’s, Inc. recently paid $4.00 to their shareholders as the annual dividend. The company also announced that future dividends will be increasing at a constant rate of 4.5 percent. If you require a 12.5 percent rate of return, how much are you willi..

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