User Account

All Pages

What is the net annual rent income of the buyer-lessor

Assignment Help Accounting Basics
Reference no: EM132643672

Question - At the beginning of current year, Hazel Company sold a machine and immediately leased it back. The following data pertain to the sale and leaseback transaction:

Sale Price at below fair value 4,000,000

Fair value of machine 4,500,000

Carrying amount of machine 3,600,000

Annual rental payable at the end of each year 500,000

Remaining life of machine 10 years

Lease term 3 years

Implicit interest rate 6%

Required - (do not round off the present value factor)

a. What amount should be reported as initial lease liability?

b. What is the cost of right of use asset?

c. What amount should be reported as gain on right transferred to the buyer-lessor?

d. What is the net annual rent income of the buyer-lessor?

Reference no: EM132643672

Questions Cloud

What balance in retained earnings at the end of year would : In addition, the company sold additional common stock amounting to $31400. As a result, the balance in retained earnings at the end of the year would be
Compare a contraceptive perfect use with its typical use : Compare a contraceptive's perfect use with its typical use. Identify some factors that prevent people from engaging in contraception use or use that is not.
Calculate the cash outflow at time zero : The Marcus Company is evaluating the proposed acquisition of a new machine. Calculate the cash outflow at time zero
What was the company revenue for kingbird inc : Recorded expenses of $3650000, and paid dividends of $242000. If Kingbird's ending retained earnings was $985000, what was the company's revenue for 2022?
What is the net annual rent income of the buyer-lessor : At the beginning of current year, Hazel Company sold a machine and immediately leased it back. What is the net annual rent income of the buyer-lessor
Hostage crises : In a hostage crises, is it ethical for a government to agree to grant a terrorist immunity if he releases the hostages,
Unethical person and any risk involved in whistle blowing : Base your posting on your relationship with the "unethical person" and any risk involved in "whistle blowing".
Examine the concepts of small proprietary company : What are the implications of being classified as either one of these three types of companies in terms of compliance and reporting requirements?
Discuss a grammar error or an apa citation error : Prior to attempting this week's forum read the information in week 6's lesson. Then post what you learned that you did not know before reading the lesson.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Create the journal entries to record payment of interest

Create the journal entries to record the payment of interest on January 1, 2015. Prepare the journal entries to record the accrual of interest and the discount.

  Definitions of reporting and non-reporting entities

Definitions of reporting and non-reporting entities. A summary of the purposes of the Corporate Management Practice Statement

  How much will the account be worth at that time

For the last 19 years, Mary has been depositing $500 in her savings account , which has earned 5% per year, compounded annually and is expected to continue.

  What should copper corporation report

The machinery had been purchased on January 2, 2012, for $30,000, For 2015, what should Copper Corporation report

  Citizens of foreign countries

Suppose a country has many of its citizens temporarily working in other countries, and many of its firms have facilities in other countries. Furthermore, relatively few citizens of foreign countries are working in this country, and relatively few ..

  Compute the depreciation expense for year

The ABC Company, located in Boston, purchases a piece of equipment from a dealer in Chicago for $75,000. The cost of shipping the equipment, $6,000, will be paid for by ABC Co.

  The entry to sell 100 shares of 1 par value common stock

the entry to sell 100 shares of 1 par value common stock at 4 per share would include a debit paid-in capital in excess

  What sample size is needed to have confidence of population

What sample size is needed to have 95% confidence of estimating the population mean amount spent in this store to within if the standard deviation is assumed to be $10?

  What is the amount of depreciation that should be recorded

Using the units-of-production method, what is the amount of depreciation that should be recorded for the second year

  Prepare the journal entry to record the estimated

during its first year of operations henley company had credit sales of 3000000 600000 remained uncollected at year-end.

  Calculate the maximum depreciation expense

The basis was $1,600,000. Calculate the maximum depreciation expense during the current year

  Assuming lloyd does not make any additional payments what

how much does lloyd need to increase his withholding by in order to avoid the underpayment penalty? increase in

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