User Account

All Pages

What is the operating profit of the lessor

Assignment Help Accounting Basics
Reference no: EM132906819

Question - At the beginning of current year, CAT Trucks and Services purchased a new equipment for P5,000,000 and leased it to MDC on August of the current year. The machine has an estimated 9-year life with a residual value of P500,000. The lease is for a three-year period at an annual rental of P1,000,000.

Additionally, MDC paid 300,000 to CAT as a lease bonus to obtain a three-year lease. CAT incurred insurance expense of P80,000 for the leased machine during the current year.

What is the operating profit of the lessor on the leased asset for the current year?

Reference no: EM132906819

Questions Cloud

Compute the break-even point in sales and units : Compute the Break-even point in sales and units. Contribution Margin, Beak-even, Margin of Safety, and Target Net Income 1.
Vision and organizational change : Evaluate the article and describe the current vision statement and the change occurring within the organization.
Assignment on appreciative inquiry : Discussion forum question You have created your personal mission, vision, and values statements by using the Appreciative Inquiry. Please submit your 3 statemen
Prepare the journal entries to record the may purchase : Prepare the journal entries to record the May 10 purchase of inventory & the May 24 sale assuming they are using weighted average cost flow assumption
What is the operating profit of the lessor : The lease is for a three-year period at an annual rental of P1,000,000. What is the operating profit of the lessor on the leased asset for the current year
Skillful communication : There are specific qualities required to successfully communicate change initiatives within an organization.
Explain the four dimensions of ansoff growth matrix : Briefly explain the four dimensions of Ansoff's Growth Matrix and then assess the risks or limits posed by diversification as a corporate level strategy.
Restructuring process : Imagine that you are the liaison between the decision makers and the followers and that your role is to communicate potential personnel change initiatives.
Discuss the limitations of financial performance measure : Discuss the limitations of financial performance measure and advice Cleam Home LLC management the suitable approach towards measuring the company.

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