User Account

All Pages

What would be the amounts related to the lease

Assignment Help Accounting Basics
Reference no: EM133013626

Question - King Company leased equipment from Mann Industries. The lease agreement qualifies as a finance lease and requires annual lease payments of $67,241 over a five-year lease term (also the asset's useful life), with the first payment at January 1, the beginning of the lease. The interest rate is 7%. The asset being leased cost Mann $245,000 to produce.

Required -

1. Determine the price at which the lessor is "selling" the asset (present value of the lease payments).

2. What would be the amounts related to the lease that the lessor would report in its income statement for the year ended December 31 (ignore taxes)?

Reference no: EM133013626

Questions Cloud

What is the actual value of the stock today : You see the price of TSLA stock is $687 a share. If Tesla's discount rate is 12%, What is the actual value of the stock today
Prepare the closing entries on december : Given the following adjusted account balances in random order, prepare the CLOSING entries on December 31, XX. Use the back of the paper
What are the operating cash flows in each year : The grill will cost $46,000 and will be depreciated straight-line over 3 years. What are the operating cash flows in each year
Calculate the depreciation expense at the end of year two : The firm requires a 9% return on its investment and has a tax rate of 21%. Calculate the depreciation expense at the end of year 2
What would be the amounts related to the lease : What would be the amounts related to the lease that the lessor would report in its income statement for the year ended December 31 (ignore taxes)
Find the average daily balance : The amount $24.45 was charged on April 21 and $207.36 was charged on April 28. A payment of $500 was made on April 25. Find the average daily balance
Prepare the journal entry to record tanner-unfs investment : Prepare the journal entry to record Tanner-UNF's investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate
What is the total hourly rate of pay : The technician gets 8 holidays (Walk-In Closed), 5 sick days and 10 vacation days. Assume all time off is taken. What is the total hourly rate of pay
What is the company''s return on assets for the fiscal year : Its expenses for the year were $3,000,000. Its total assets were $10,000,000. What is the company's return on assets for the fiscal year

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