Solution-What is lease liability to be reported as

What is lease liability to be reported as noncurrent on dec

Assignment Help Financial Accounting

Reference no: EM132880992

On January 1, 2020, Jannael Company leased machinery from Chin Company for a 10-year period. The useful life of the asset is 20 years. Equal annual payments under the lease are P200,000 and are due on January 1 of each year starting January 1,2020.

The present value on January 1,2020 of the lease payments over the lease term discounted at implicit interest rate of 10% was P1,352,000.
The lease provides for a transfer of title to the lessee upon expiration of the lease term.

Problem 1. What is the lease liability on December 31, 2020?
a. 1,352,000
b. 1,152,000
c. 1,067,200
d. 1,552,000

Problem 2. What is the lease liability to be reported as noncurrent on December 31,2020?
a. 1,215,920
b. 1,090,240
c. 1,067,200
d. 973,920

Problem 3. What is the depreciation for 2020?
a. 135,200
b. 115,200
c. 67,600
d. 20,000

Reference no: EM132880992

Questions Cloud

What amount should be reported as accrued interest payable : On December 31, 2017, what amount should be reported as accrued interest payable? On September 1,2016. Marco Company issued a note payable to National Bank

Several types of hr staffing forecasting : There are several types of HR staffing forecasting. Choose one of these and explain why you feel it is important. (exclude currency exchange rate forecast).

Explain unique strategic actions taken by fedex and ups : What are some of the major and unique strategic actions taken by FedEx and UPS, respectively? To what extent have these actions contributed to long-term competi

Explain the disparity between the emotion ahmed displays : Ahmed is a customer representative working in a reputable organization.

What is lease liability to be reported as noncurrent on dec : What is the lease liability to be reported as noncurrent on December 31,2020? Jannael Company leased machinery from Chin Company for a 10-year period

What will the learning objectives be for the training : Imagine you work in a company whose main business is the sales and marketing of coffee. In the last few weeks, a number of customers have complained about one o

History on the dominant language spoken : History on the dominant language spoken and how do you say the following comments in their language (you can look this up on youtube.com). i.e Bemba in Lusaka

What is strategic management and strategic planning : 1.What is strategic management and strategic planning? How do they apply to the healthcare industry? Give specific examples.

Determine the dividends in arrears for preferred stock : Determine the dividends in arrears for preferred stock for the second year. Sabas Company has 20,000 shares of $100 par, 2% cumulative preferred stock

User Account

All Pages

What is lease liability to be reported as noncurrent on dec

Reference no: EM132880992

Reference no: EM132880992

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT