Reference no: EM133069490
Question - At the beginning of current year, Yohan Company sold an equipment with remaining useful life of 10 years and immediately leased it back for 5 years.
Sale price at above fair value ?????17,100,000
Fair value of equipment ?????15,000,000
Carrying amount of equipment ?????13,500,000
Annual rental payable at the end of each year ???1,500,000
Implicit interest rate ??????10%
Present value of an ordinary annuity of 1 at 10% for 5 periods? 3.79
Required -
1. What amount should be recognized as initial lease liability?
2. What amount should be recognized as cost of right of use asset?
3. What amount should be recognized as gain on right transferred to the buyer-lessor?
4. What amount should be recognized as annual rental income of the buyer-lessor?
|
What is the capital market
: What is the capital market? What are broker markets? What are dealer markets? How do they differ?
|
|
What will be the total interest expense
: Question - A corporation issues $400,000 of 10%, 5-year bonds at 103. What will be the total interest expense over the life of the bonds
|
|
Describe your long-term professional objectives
: Describe your exposure, if any, to research in your field of interest. Include non-academic personal or work experiences only if they are directly relevant to t
|
|
What were his suggestions to remedy the greek economy
: Greece has been in the news for several years. In 2015, amidst massive unrest and requirements for debt payments to be made to the troika of lenders (IMF, World
|
|
What amount should be recognized as initial lease liability
: Annual rental payable at the end of each year ???1,500,000. What amount should be recognized as initial lease liability
|
|
Effective annual rate for a one-year deposit
: Consider the conditions of this deposit at this bank: Quoted interest rate of 3.45% compounded monthly for the first 4 months. After that a regular interest rat
|
|
What is the required amount of year-end payment
: Question 1: Time Value of Money (20 points) A client invests $5,000,000 in an investment fund projected to earn 8% annually. Estimate the value of this investme
|
|
Find the net investment assigned to the new machine
: Sunshine Corporation is planning to purchase a new machine costing P2,800,000, Find the net investment assigned to the new machine
|
|
What is the price of the bond
: A 5-year bond of Lite Corp has a par value of $1,000. The coupons are paid quarterly. If the bond has an annual interest rate of 8%, and the required rate of re
|