Reference no: EM132770988
Question - On January 1, 2014, company ABC leased equipment to company XYZ. The following information pertains to the lease.
The term of the noncancelable lease is 6 years, with no renewal option. The equipment reverts to the lessor at the termination of the lease
Equal rental payments are due on January 1 of each year, beginning in 2014
The fair value of the equipment on January 1, 2014 is $150,000, and its cost is $120,000
The equipment has an economic life of 8 years, with an unguaranteed residual value of $10,000. Company XYZ depreciates all of its equipment on a straight-line basis
Company ABC set the annual rental to ensure an 11% rate of return. Company XYZ's incremental borrowing rate is 12%, and the implicit rate of the lessor is unknown.
Present value of an annuity due at 11% for 6 periods = 4.6959;
Present value of an annuity due at 12% for 6 periods=4.60478)
Collectibility of lease payments is reasonably assured.
Required - What is the amount of annual rental payment?
|
What is the couple taxable income
: In addition, they have legitimate itemized deductions totaling $25,750. Their total income from wages is $220,700. What is the couple's taxable income?
|
|
What is influenza type a
: What is Influenza Type A? Who/what does it affect, and how does it differ from Type B? What is one of the diseases/conditions that Type A can cause?
|
|
According to the managerial grid model
: Think of a conflict that occurred in a team in which you were a part and analyze it according to the Managerial Grid model
|
|
Define the sharpe ratio using the number resulted
: Explain what this number (the Sharpe ratio) tells you? In other words, define the Sharpe ratio using the number resulted from part a's calculation.
|
|
What is the amount of annual rental payment
: The fair value of the equipment on January 1, 2014 is $150,000, and its cost is $120,000. What is the amount of annual rental payment
|
|
What qualifications are required for the position
: What measures can be taken to prevent and mitigate the likelihood of a conflict of interest from occurring? What qualifications are required for the position?
|
|
What was the actual outcome of the situation
: What was the actual outcome of the situation? What could it have been if you acted differently? What lessons can you learn from this situation?
|
|
What the loss on realization of the non-cash assets was
: Paying all liabilities amounting to P 12,000, there is still P56,000 cash left for distribution. The loss on realization of the non-cash assets was
|
|
Explain about the life cycle of cypovirus
: Explain about the life cycle of cypovirus.
|