User Account

All Pages

What is the amount of the amortization

Assignment Help Accounting Basics
Reference no: EM133077050

Question - Elliott Company leased a delivery truck with a fair value of $85,000 and an estimated useful life of 8 years from Larson Motors signing a five-year lease on December 30, 2017. The lease begins on January 1, 2018, and Elliott will return the truck to Larson at the conclusion of the lease on Dec 31, 2022.  Elliott made an initial lease payment of $12,000 on January 1 of 2018, with the remaining lease payments of the same amount due on January 1 of the remaining four years.  The implicit rate of interest on the lease is 4% and is known by Elliott. The lease doesn't contain a purchase option, incentives, residual value guarantees, or a transfer of ownership and Elliott didn't incur any initial direct costs related to the lease. Assuming this lease is correctly classified as an operating lease: What is the amount of the amortization of the right to use asset that will be recognized in 2019 (year 2)?

Reference no: EM133077050

Questions Cloud

Customer relations strategy : The company recently reviewed its customer relations strategy and suggested that the brand communication be consistent across all customer touch points
Principles of Secure Operating Systems : Write a report on its security features with respect to memory management. Focus especially on recent changes made to enhance security
What is the measurement of product x and y : The manufacture of items of inventory has been completed but no selling costs have yet been incurred. What is the measurement of PRODUCT X and Y
Pitching The Plan : Summarize the threats and challenges you have identified within the current strategic plan. Explain proposed process improvements.
What is the amount of the amortization : Assuming this lease is correctly classified as an operating lease: What is the amount of the amortization of the right to use asset that will be recognized
Organization implement social responsibility initiatives : What do you consider to be the top three benefits to social responsibility? How does your organization implement social responsibility initiatives?
Combined to implement community behavioral change : How can individual, group, and social efforts be combined to implement community behavioral change?
Determine the allocation to each of the divisions : Determine the allocation to each of the divisions using the Dual rates based on time used (for personnel costs) and number of reservations
Collective bargaining : What are the key issues in an employee alcohol- and drug-testing program? Discuss the employee's attitudes toward drug testing.

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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