Reference no: EM133096130

Questions -

Q1. At the beginning of 2020, VIXEN Company leased an equipment with the following information: Annual rental payable at the end of each year 450,000; residual value guarantee 50,000; Lease incentive received 20,000; Lease term 4 years; Useful life of the equipment 8 years; implicit interest rate 10%; present value of an ordinary annuity of 1 at 10% for 4 periods 3.17; present value of 1 at 10% for 4 periods 0.68. What is the cost of right of use asset?

Q2. On January 1, 2021 COMET Company provided the following data in connection with the defined benefit plan: Fair value of plan assets - 6,700,000; Projected benefit obligation - 7,600,000. The accountant revealed the following information for the current year: Current service cost - 1,750,000; Past service cost - 300,000; Discount rate - 10%; Expected return on plan assets - 12%; Actual return on plan assets - 500,000; Contributions to the plan - 2,000,000; Benefit paid to retirees - 1,250,000. What is the employee benefit expense on December 31, 2021?

Q3. CUPID Corporation leased equipment to a lessee on April 1, 2021 for an eight-year period expiring April 1, 2029. Equal payments under the lease are 600,000 and are due on April 1 of each year. The first payment was made on April 1, 2021. The list selling price of the equipment is 3,520,000 and the carrying amount is 2,800,000. The lease is appropriately accounted for as a sales-type lease. The present value of the lease payments is 3,300,000. What is the amount of profit on the sale that should be reported for 2021?