Reference no: EM132382242
Question
Sunland Co. purchases land and constructs a service station and car wash for a total of $555000.
At January 2, 2018, when construction is completed, the facility and land on which it was constructed are sold to a major oil company for $630000 and immediately leased from the oil company by Sunland. Fair value of the land at time of the sale was $69300.
The lease is a 10-year, noncancelable lease. Sunland uses straight-line depreciation for its other various business holdings. The economic life of the facility is 15 years with zero salvage value.
Title to the facility and land will pass to Sunland at termination of the lease. A partial amortization schedule for this lease is as follows:
Payments Interest Amortization Balance
Jan. 2, 2018 $630000
Dec. 31, 2018 $106975.48 $63000 $43975.48 586024.52
Dec. 31, 2019 106975.48 58602.45 48373.03 537651.49
Dec. 31, 2020 106975.48 53765.15 53210.33 484441.16
What is the discount rate implicit in the amortization schedule presented above?
|
Consider the big six common challenges in groups
: Of the six, which are you most likely to have problems with? Can you think of some strategies to overcome this problem?
|
|
Imagine yourself as a hr professional
: Imagine yourself as a HR professional. How can you set an example when it comes to team building?
|
|
N5E03 Science and Materials Assignment Problem
: N5E03 Science and Materials Assignment Help and Solution, BTEC (RQF) - 2019-2020, UK - Produce a waste management plan for a project
|
|
Analyze a conflict you have witnessed in school or work
: Analyze a conflict you have witnessed in school or work. What were the reasons or sources of the conflict?
|
|
What is the discount rate implicit in amortization schedule
: At January 2, 2018, when construction is completed, the facility and land on which it was constructed are sold to a major oil company for $630000.
|
|
Adopt a laissez-faire approach to leading groups
: Why do you think people often adopt a laissez-faire approach to leading groups?
|
|
Devil advocate in a group
: How could you serve the role as the devil advocate in a group without being destructive or hostile toward other group members and their opinions?
|
|
Does all organizations effectively communicate
: Does all organizations effectively communicate and socialize their goals? If so, how? What could be done in order to improve?
|
|
What is the amount of depletion that should be recorded
: Frederick Mining Company owns a large parcel of land which costs $1,100,000. It is estimated to contain 1,500,000 tons of recoverable ore.
|