User Account

All Pages

What type of lease is for child company

Assignment Help Financial Accounting
Reference no: EM132496465

Accounting for lessee

On January 1, 2017, Beard Company purchased a machine for $620,000. The machine is expected to have a 10-year life, no residual value, and will be depreciated by the straight-line method. On January 1, 2017, it leased the machine to Child Company for a three-year period at an annual rental of $128,000 to be paid at the end of each year. Beard could have sold the machine for $817,298 instead of leasing it. Child does not know the implicit rate in the lease, but it has an incremental rate of 9%. Child Company has a December 31 reporting year. It adopted early the provisions of ASC 842 on January 1, 2017. Use tables (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided. Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.)

Required:

Question 1. What type of lease is this for Child Company?

Question 2. What are the amounts of the right-of-use asset and lease liability that Child Company should report on its balance sheet at December 31, 2017?

Question 3. How much rent expense should Child Company recognize in 2017?

Reference no: EM132496465

Questions Cloud

Demonstrate the interrelationship of working of tps : Demonstrate the interrelationship of working of TPS, MIS, DSS and ESS using a real-life example of a firm and How databases and information management (IM)
What amounts should each of the three assets be recorded : Values of the assets are land $79,200, building $290,400, and equipment $105,600. At what amounts should each of the three assets be recorded?
Frustrations and negative emotions of members : What do you call a person who serves as the target for the frustrations and negative emotions of members of the in-group.
BUS 401 Quality Management Assignment : BUS 401 Quality Management Assignment Help and Solution - Emirates College of Technology, UAE. Topic - Total Quality Management
What type of lease is for child company : What are the amounts of the right-of-use asset and lease liability that Child Company should report on its balance sheet at December 31, 2017?
Makes acceptable excuses for unacceptable behavior : What is the term for someone who makes acceptable excuses for unacceptable behavior?
How can we justify saying someone with 69 is abnormal : If an IQ of 70 is the cut-off point, how can we justify saying someone with 69 is abnormal, and someone with 70 normal?
Prepare the journal entry to record the acquisition of land : Prepare the journal entry to record the acquisition of the land. Culver Company obtained land by issuing 2,100 shares of its $13 par value common stock.
Cause of the abnormal behavior in the first place : If a drug helps a person's behavior become more "normal," does that mean that a biochemical abnormality was the cause of the abnormal behavior in the first plac

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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