User Account

All Pages

What is the book value of the right-of-use asset

Assignment Help Accounting Basics
Reference no: EM132931295

Question - On January 2, 2020, Jungkook Company leased a piece of music equipment from Suga company. The 5-year lease calls for a 10% down payment and equal annual payments at the end of each year. The equipment has an expected useful life of 5 years. Jungkook's incremental borrowing rate is 10%, and it depreciates similar equipment using the double-declining balance method. The selling price of the equipment is P325,000, and the rate implicit in the lease is 8%, which is known to Jungkook. (Use five decimal places for PV factors).

What is the book value of the Right-of-use asset and what is the balance in the Lease Liability account on December 31, 2020, respectively?

a. 260,000 ; 248,491

b. 325,000 ; 219,243

c. 195,000 ; 242,643

d. 208,000 ; 248,491

Reference no: EM132931295

Questions Cloud

Describe glam cosmetics recognise expenditure as asset : Describe whether Glam Cosmetics should recognise this expenditure as an asset, justifying your answer by reference to the conceptual framework asset
What is molecular mimicry : What is molecular mimicry? Explain its role in autoimmunity and give an example.
Determine sum of money hector originally invested is closet : Determine the sum of money Hector originally invested is closest to? Twenty years ago, Hector invested a sum of money in an account earning interest
Find how much spare minimum is recorder by green corp : The entry to record the reissuance of 5,000 treasury shares on December 5, 2021 would include a credit to? how much is recorded for treasury stock on july 18?
What is the book value of the right-of-use asset : What is the book value of the Right-of-use asset and what is the balance in the Lease Liability account on December 31, 2020, respectively
What would be the balance reported for retained earnings : Lachlin Corporation's, If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?
Find which set of forecasts is more accurate : Find which set of forecasts is more accurate? Is it the simple moving average forecasts or the weighted moving average forecasts?
How much manufacturing overhead was applied to all jobs : Doreen estimated that total manufacturing overhead would be $600,000 and total machine hours would be 60,000. How much manufacturing overhead was applied
Find how could balance with the idea of borrowing money : When taking any personal finance classes, how could you balance this with the idea of borrowing money to start a business or to grow a business?

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