User Account

All Pages

What is the balance of the lease receivable as of December

Assignment Help Accounting Basics
Reference no: EM133025692

Question - Case - ABC Finance Corp. leased an equipment with a cost of P700,000 to XYZ on January 1, 2018. The company incurred direct cost related to the negotiation and arranging the lease agreement at P20,955. Under the lease agreement appropriately accounted for on the books of ABC as a direct finance lease, since ABC is engaged solely in financing operations, XYZ shall pay P200,000 annually for five years every December 31, starting 2018. The equipment has a useful life of five years. The implicit lease rate as a result of the direct lease cost was at 12%.

Required -

1. How much profit from sale should be immediately recognized by ABC Finance Corp.?

2. What is the interest income should be recognized by ABC Finance Corp. in 2019?

3. What is the balance of the lease receivable as of December 31, 2019?

Reference no: EM133025692

Questions Cloud

Different elements of employees attitudes : Job satisfaction, commitment, and engagement are often grouped together; however, they measure different elements of employees' attitudes towards their jobs.
Calculate Haslam profit margin ratio : Return on equity (ROE) 5%. Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations
Determine the probability value : Understand representation of random variables and Investigate characteristics of joint random variables - Understand propagation of random signals in LTI system
Designing effective instruction : The name of the assignment is Organizer (Just incase anyone has the same class) Midweek (Tuesday, Wednesday, or Thursday) is often recommended as the best sched
What is the balance of the lease receivable as of December : Case - ABC Finance Corp. leased an equipment with a cost of P700,000 to XYZ on January 1, 2018. What is the balance of the lease receivable as of December
Internal issues relative to organizational behavior : Research topic that relates to social and/or ethical responsibility. You can address a topic that has either global or local implications.
Explain the language variation and register analysis : What do you understand about language variation and register analysis?
Equal opportunities and managing diversity : David Portner has worked for Roygbiv Solutions - a multinational consultancy - as a software programmer for five years. After a seizure in the workplace, David
Paradigms and principles of effectiveness : Paradigms are the way we see, understand, and interpret the world--our mental map; Principles are timeless, universal, self-evident, and in operation, whether w

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