What will be the balance reported as a liability

Assignment Help Accounting Basics
Reference no: EM132604567

Question - On January 1, 2018, Packard Corporation leased equipment to Hewlitt Company. The lease term is 10 years. The first payment of $459,000 was made on January 1, 2018. Remaining payments are made on December 31 each year, beginning with December 31, 2018. The equipment cost Packard Corporation $2,760,500. The present value of the lease payments is $3,000,500. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 11%, what will be the balance reported as a liability by Hewlitt in the December 31, 2019, balance sheet?

a. $2,083,392.

b. $2,362,065.

c. $2,541,500.

d. $2,162,892.

Reference no: EM132604567

Questions Cloud

What is the amount of amortization to pension expense : The average remaining service period for the employees expected to receive benefits is 10 years. What is the amount of amortization to pension expense for year
Should buy the new milling machine or not : Lotus corporation, Assuming 40% taxes and cost of capital 10%, examine whether Lotus corporation should buy the new milling machine or not
Prepare a business report for the company audit committee : Evaluates, taking an agency theory lens, Whether Qantas management is likely to engage in "big bath accounting" via impairment of assets as a result of COVID-19
Communication styles of your culture : How your culture perceives substance use. Are there any traditional uses of substances that are deemed culturally acceptable?
What will be the balance reported as a liability : Assuming the interest rate for this lease is 11%, what will be the balance reported as a liability by Hewlitt in the December 31, 2019, balance sheet
What impact does the example have on viewers lives : Many people would say that the 1999 premier of The Sopranos was a turning point in the development of television as an art form. Choose a television.
Make journal entry to record Gore provision for taxes : Gore Company, organized on January 2, 2018, had pretax accounting income of $8,000,000. Make journal entry to record Gore provision for taxes
Describe the landform : What has your experience visiting the landform been like? How did you feel being there? Describe the landform.
Discuss major theoretical approach : Discuss at least one major theoretical approach to explaining and resolving the life span development situation

Reviews

Write a Review

Accounting Basics Questions & Answers

  ACCT525 Current Issues in Accounting Assignment

ACCT525 Current Issues in Accounting Assignment Help and Solution - DeVry University, USA. Describe key differences between ISA's and US Auditing Standards

  What amount will neuro inc record as a valuation allowance

In order to account for this, what amount will Neuro Inc. record as a valuation allowance

  Prepare the revised balance sheets

Branford's business is growing rapidly, and the company needs to expand its manufacturing facilities. This expansion will require the company to obtain an additional $1,000,000 in cash. Prepare the revised balance sheets that would result under eac..

  Nonfinancial assets of a company

Research this topic, and give your argument for or against the use of fair value for the nonfinancial assets of a company.

  How would you record the payment in the company books

On November 6, 2009, a company pays $2,400 for next year's rent. How would you record the payment in the company's books

  What is the net present value of the project

The project would require a $15,000 investment. What is the net present value of the project assuming an interest rate of 10 percent

  What amount of safety stock is appropriate

ACCT 111 Assignment. A company makes T-shirts used by local gyms. Fabric is the primary raw material. Demand is onstant but the lead time for getting fabric can vary. What amount of safety stock is appropriate

  What is the amount of over or under applied overhead

verhead incurred was $547. Overhead is allocated based on Direct Labor Dollars. If Direct Labor cost is $3,189, what is amount of over or under applied Overhead

  What are the major steps of systems implementation

What are the major steps of systems implementation?

  Jim wayman is considering opening a kwik oil change center

jim wayman is considering opening a kwik oil change center. he estimates that the following costs will be incurred

  Calculate the piecework hours and the worker pay

A company operates a piecework scheme where the hourly rate is £3.00 per hour and the agreed rate of production is 600 units per hour.

  The lo tech co just issued a dividend of 220 per share on

the lo tech co. just issued a dividend of 2.20 per share on its common stock. the company is expected to maintain a

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