User Account

All Pages

What is the annual depreciation of the right use asset

Assignment Help Accounting Basics
Reference no: EM132544573

Question - At the beginning of current year, an entity sold an equipment with remaining life of 10 years and immediately leased it back for 4 years at the prevailing market rental.

Sale price at fair value 6,000,000

Carrying amount of equipment 4,500,000

Annual rental payable at the end of each year 800,000

Implicit interest rate 10%

Present value of an ordinary annuity of 1 at 10% for four periods 3.17

Required -

Q1. What is the initial lease liability?

Q2. What is the cost of right of use asset?

Q3. What is the gain on right transferred?

Q4. What is the annual depreciation of the right use asset?

Reference no: EM132544573

Questions Cloud

Constructive dialogue and erm : Is effective risk management possible without constructive dialogue? What are the forces that tend to undermine effective risk management in an organization
Information governance : With this framework in mind that allows for a conceptual look at data governance processes, rules, and people requirements identify
The roles and responsibilities for risk management : How risk mitigation strategy planning can reduce the likelihood and/or impact of risks, The roles and responsibilities for risk management
What is the gross investment in the lease : An entity is in the business of leasing new sophisticated equipment under a direct financing lease. What is the gross investment in the lease
What is the annual depreciation of the right use asset : At the beginning of current year, an entity sold an equipment with remaining life of 10 years. What is the annual depreciation of the right use asset
Information governance : It is priority that students are provided with strong educational programs and courses that allow them to be servant-leaders in disciplines and communities
Explain the impact of each of these separate issues : The audit of the accounting system found numerous severe internal control weaknesses during the interim audit. Explain impact of each of these separate issues
K-means clustering algorithm to cluster multi class : Discuss the strengths and weaknesses of using K-Means clustering algorithm to cluster multi class data sets.
How risk management impacts business model : Create a report documenting various aspects of how risk management impacts the business model.

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