What is the amount of income

Assignment Help Accounting Basics
Reference no: EM132870306

Question - ABC Company leased equipment to DEF Company on July 1, 2019, for a one year period expiring on June 30, 2020, for P 40,000 a month. On July 1, 2020, ABC leased this piece of equipment to GHI Company for a 3 year period expiring June 30, 2021, for a P 50,000 a month. The original cost of the equipment was P 3,200,000. The equipment which has been continually on lease since July 1, 2019 is being depreciated on a straight-line basis over an eight year period with no salvage value.

Both the lease to DEF and GHI are appropriately recorded as operating leases for accounting purposes. DEF and GHI both accounted their lease by applying the recognition and measurement exemptions for short term leases with low value.

What is the amount of income (expense) that GHI would record as a result of the above facts for the year ended December 31, 2020?

Reference no: EM132870306

Questions Cloud

Commitment to triple bottom line for a health company : Identify key financial records that indicate commitment to triple bottom line for a health company
Type of controversy in the future : Should Facebook try to prevent this type of controversy in the future? And if so, how?
Explain what happened in two time periods : You have a big job ahead of you. Using your knowledge of aggregate demand and aggregate supply, can you explain what happened in these two time periods?
Legal office stating delinquency and penalties : ABC Corporation issued demand letter from the Banco De Oro regarding overdue of their previous SOA for the month of January 2021.
What is the amount of income : What is the amount of income (expense) that GHI would record as a result of the above facts for the year ended December 31, 2020
How could use the standard tools of expansionary monetary : Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience
What are benefits of accumulating cash balances : What are the benefits and drawbacks of accumulating cash balances rather than paying dividends and what effects do dividend policy
Should there be an supranational regulations : What in your opinion is the right approach? Should there be an supranational regulations, that would prohibit low standards of labor? Please explain why.
Demonstrate different management and leadership styles : Demonstrate different management and leadership styles for different situations.

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.

  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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd