Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Extractor Company leased a machine on July 1, 2013, under a 10-year lease. The economic life of the machine is estimated to be 15 years. Title to the machine passes to the Extractor Company at the expiration of the lease, and thus, the lease is a capital lease. The lease payments total $194,000 per year (which includes executory costs of $6,000 per year), all payable in advance annually. The incremental borrowing rate of the company is 9%, and the lessor's implicit interest rate is unknown. Extractor Company uses the straight-line method of amortization and the calendar year for reporting purposes.
1. Give all entries on the books of the lessee relating to the lease for 2013.
2. Assume that the lessor retains title to the machine at the expiration of the lease, that there is no bargain renewal or purchase option, and that the fair value of the equipment is $1,420,000 as of the lease date. Using the criteria for distinguishing between operating and capital leases according to FASB ASC Topic 840, what would be the amortization expense for 2013?
Maria Alvarez is investing $370,700 in a fund that earns 11% interest compounded annually. What equal amounts can Maria withdraw at the end of each of the next 21 years?
Firms A and B are identical except for their level of debt and the interest rates they pay on debt. Each has $2 million in assets, $400,000 of EBIT, and has a 40% tax rate.
Cash flow does not rely on which of the following: A) the payment patterns of customers. B) the monetary policy of the Federal Reserve. C) the speed at which suppliers and creditors process checks. D) the efficiency of the banking system.
At the end of the year prior to the sale, Rita's basis in RSTU was $60,000. The partnership allocates $12,000 of income to Rita for the portion of the year she was a partner. On the date of the sale, the partnership assets and the agreed fair mark..
What is meant by the net realizable value for accounts receivable? What is aging of accounts receivable, and how is it used to account for uncollectible accounts? How is the accounts receivable turnover computed? What information does this ratio prov..
Demarcus is a 50% partner in the DJ partner. DJ has taxable income for the year of $200,000. Demarcus received a $75,000 distribution from the partnership. What amount of income related to DJ must Demarcus recognize?
Conduct research on the selected securities (Ford and UPS) Analyze the organizations' 10K and investment reports, general economic data, and Federal Reserve data.
A certain airplane has two independent alternators to provide electrical power.The probability that a given alternator will fail on a 1-hour flight is .02. What is the probability that (a) both will fail? (b) Neither will fail? (c) One or the othe..
Explain some common internal controls that a company might have in place. What are they designed to protect? What are the reporting requirements regarding internal controls in the Sarbanes-Oxley Act?
MBA 640 Exam 1, Spring 1, 2014, Determine the net income for the month of December and for the month of June.
Why is essential that the planning functions of controllership can help an organization effectively and efficiently achieve a goal?
Open the Allowance for uncollectible accounts T-account, and post entries affecting that account. Keep a running balance. Show how Mountain Terrace Medical Center should report net accounts receivable on its December 31, 2012 balance sheet. Use the ..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd