User Account

All Pages

What is the manufacturer profit recognized by ABC Company

Assignment Help Accounting Basics
Reference no: EM132868705

Question - ABC Company uses lease as a means of selling its equipment. On July 1, 2019, the company leased an equipment to DEF Company. The cost of the equipment to ABC Company was P 684,000. The fair market value (which was the sales price) was P 792,236.54 at the time of the inception of the lease.

Annual lease payments are P 135,000 and are payable in advance for 8 years. The equipment has an expected economic life of 10 years. At the end of the lease term, title to the equipment will pass to DEF Company. Implicit interest rate is 10%.

Required - What is the manufacturer's profit recognized by ABC Company?

Reference no: EM132868705

Questions Cloud

Calculate the annual equivalent of the cash amounts : Calculate the Annual Equivalent of the cash amounts above, to determine the annual rental income needed to break even on the project, with discount rate of 15%
Question - Analyzing Budget and Actual Data : Question - Analyzing Budget and Actual Data - Examine the schedule or statement in detail. Is it similar in form to Illustration 4-6
Determine the gain or loss on bonds retirement : Determine the gain/loss on bonds retirement and prepare journal entries to record the retirement. Include the unamortized bond discount
Find the beta of Stock A : Question - Find the beta of Stock 'A' when market return is 14%, risk premium is 5% and required rate of return is 15.3%
What is the manufacturer profit recognized by ABC Company : Annual lease payments are P 135,000 and are payable in advance for 8 years. What is the manufacturer profit recognized by ABC Company
Which is closest to the expected return of the stock : Suppose GP issues $400 million of new stock to buy back the debt. Which is closest to the expected return of the stock after this transaction
Which system should be chosen : Allied accounts for differential risk by adjusting its corporate cost of capital up or down by 2 percentage points. Which system should be chosena
Service recovery communication tool : Consider the topic of service recovery. What do you think about using email as a service recovery communication tool?
Conflict and negotiation : Find one online or published article from within the last two years 2020 - 2021,

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