User Account

All Pages

What is the interest income

Assignment Help Accounting Basics
Reference no: EM132564615

Question - On January 1, 2020, Lahat Pasado Padin Company leased a Machinery to another entity with the following details, the Lease is treated as Direct Financing Lease:

Annual Rental Payable at the end of each year P400,000

Bargain Purchase Option P250,000

Useful Life 5 years

Lease Term 5 years

Interest Rate 8%

PV of Ordinary Annuity of 8% for 5 periods 3.9927

PV of Annuity Due of 8% for 5 periods 4.3121

PV of 1 of 8% for 5 periods 0.6806

Payments starts on December 31, 2020

Required -

1. What is the Net Investment?

2. What is the Interest Income for 2020?

3. At the end of the Lease Term, the entity exercised its right to purchase the machinery, the fair value of the machinery at the time of exercise is 400,000, how much is the gain or loss?

Reference no: EM132564615

Questions Cloud

Determine the amount of any Qualified Business Income : T earns $10,000 in qualified dividends. Determine the amount of any Qualified Business Income Deduction to which T is entitled
What is the market value of the bond : Given the market rate of interest of 4.2 percent, what is the market value of the bond?
Definition or characteristics of each form of leadership : Provide one or more examples to support the definition or characteristics of each form of leadership.
Determining transfer price and special oder : What's the decision making process in determining transfer price, special oder and outsource? Explain in detail with suitable example.
What is the interest income : PV of Ordinary Annuity of 8% for 5 periods 3.9927 and Annual Rental Payable at the end of each year P400,000. What is the Interest Income
Party platform creation activity : We learned about the important functions of political parties. You also had the opportunity to browse the Democratic and Republican Party platforms
What is the minimum demand deposits : An FI is planning to issue $10,000,000 in commercial loans. It will finance all of it by issuing demand deposits.
What the quantitative and qualitative factors should be : What's the quantitative and qualitative factors should be considered in transfer pricing, special order and outsource decision making?
Option of an extra dividend versus a share : Just Right Incorporated is considering the option of an extra dividend versus a share repurchase and the impact of both decisions on the firm.

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