What is the return that firm x earns on the lease

Assignment Help Accounting Basics
Reference no: EM133024225

Question - Firm X buys equipment for $7,000 and leases the equipment to firm A for $800 a year for four years. After four years, firm X expects to sell the asset for $6,000. What is the return that firm X earns on the lease?

Reference no: EM133024225

Questions Cloud

Why governance matters in an integrated report : 1. Without an integrated report, can a company not going to be successful? Why?
What is the role of management accountants : 1. Without an integrated report, can a company not going to be successful? Why?
What is the small trucks npv : This truck which would costs $156 000 is expected to earn annual net cash inflows of negative $35,000. What is the small trucks NPV
Strategic and technical security measures : Considering the importance of data in organization, it is absolutely essential to secure the data present in the database.
What is the return that firm x earns on the lease : Firm X buys equipment for $7,000 and leases the equipment to firm A for $800 a year for four years. What is the return that firm X earns on the lease
What changed in business world regarding data availability : What changed in the business world regarding data availability and acquisition that would explain the analytics explosion we have 10 years later?
Output plug-in options : Provide an example of a situation or type of IDS requirement that would be well suited for the plug-in or add-on you choose.
Compare the monthly payments : Liam wants to compare monthly payments for interest rates that vary from 3.95% to 5.15% and for terms of 120, 180, and 240 months. Compare the monthly payments
Determining the adequacy of the selected models : After selecting models based on information criteria (AIC, SBIC, or HQIC), what are the tests for determining the adequacy of the selected models

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the maximum amount should pay today to purchase

What is the maximum amount you should pay today to purchase a share of Northern's stock if your goal is to earn a 12 percent rate of return?

  What will be the amount of cash received by king

If Nettles is personally bankrupt and unable to pay any of the $66,000, what will be the amount of cash received by King and Tanaka upon liquidation?

  A company pays its insurance on an annual basis the

a company pays its insurance on an annual basis. the insurance premiums are 18000 per year. the insurance coverage

  Calculate what is the amount of income

What is the amount of income before income taxes for Mark's business after normalizing the income (correcting for excess deductions taken)?

  Prepare the necessary journal entries on lessee side

The guaranteed amount of $9,000. Prepare the necessary journal entries on 1/1/2020, 12/31/2020, and 1/1/2021 on Lessee's side

  How much will corporation have to increase the deposits

XYZ Corporation, having recently issued a $50 million 10-year bond issue, is committed to making annual sinking fund deposits of $3, 450,000.

  Record the retirement of the bonds on august

Is the bond being issued at a premium or discount? Why? Record the retirement of the bonds on August 1, 2030. Record the issue of the bonds on August 1, 2020

  What is estimated total selling and administrative expense

What is the estimated total selling and administrative expense for July and what is the estimated finished goods inventory balance at the end of July

  What is correlation and its types

What is correlation? What are the different types of correlation? Why is it important to determine correlation?

  Review the pennsylvania writing assessment

Review the Pennsylvania Writing Assessment Domain Scoring Guide

  How much was the final payment to the bank

On May 1, 2020, Janine Company secured a loan from NorthSouth Bank, P1,250,000 with 1% monthly interest. How much was the final payment to the bank

  Which is included in profit from continuing operations

Which is included in profit from continuing operations? According to PFRS 5, assets held for sale are measured at comprehensive income

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd