### Problem related to leasing a copier

Assignment Help Accounting Basics
##### Reference no: EM13152444

Jack Sawyer is presently leasing a copier from John Office Equipment Company. The lease requires 11 annual payments of \$2,500 at the end of each year and provides the leaser (John) with an 8% return on its investment. You may use the following 8% interest factors:

9 Periods 10 Periods 11 Periods

Future Value of 1 1.99900 2.15892 2.33164
Present Value of 1 .50025 .46319 .42888
Future Value of 12.48756 14.48656 16.64549
Ordinary Annuity of 1
Present Value of 6.24689 6.71008 7.13896
Ordinary Annuity of 1
Present Value of 6.74664 7.24689 7.71008
Annuity Due of 1

(a) Assuming the computer has an eleven-year life and will have no salvage value at the expiration of the lease, what was the original cost of the copier to John?

(b) What amount would each payment be if the 11 annual payments are to be made at the beginning of each period?

#### Accounting principles-comprehensive

Presented below are a number of business transactions that occurred during the current year for Gonzales, Inc. Instructions In each of the situations, discuss the appropriat

#### Determining the foreclosure rates

According to recent reports, home foreclosures were up 47% in March 2008 compared to the previous year (realestate.msn.com; April 2008). The data show home foreclosure rates

#### Problem related to minimum pretax return

The company requires a minimum pretax return of 13% on all investment projects. The net present value of the proposed project is closest to:

#### Traditional air-conditioner costs

A company is provided with a choice of 2 kinds of air-conditioners of similar capacity of 12,500 kcal/hr. The traditional air-conditioner costs around HK\$50,000 with EER of 2.

#### Return and risk of small-company stocks

Calculate the average returns on small-company stocks and u.s. treasury bills. Calculate the variances and standard deviations of the returns on small-company stocks and u.s.

#### Why might managers seeking a monthly bonus on attaining

Why might managers seeking a monthly bonus on attaining a target operating income prefer the sales method of accounting for byproducts rather than the production method?

#### Determining the probable cause of difference

What was the probable cause of this difference? If this was not the cause, what should he do to find the error? - Objective: to find cause of balance sheet columns not in ba

#### Question on business continuity

Imagine you are the Director of Internal Audit and executive management has asked you to work with the Chief Information Officer to evaluate the security over Information Te

### Write a Review

#### 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!