Already have an account? Get multiple benefits of using own account!
Login in your account..!
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!
Lessee Company leases heavy equipment on January 1, 2010 under a capital lease from Lessor Company with the following lease provisions:The lease is noncancelable and has a term of 10 years. The lease does not contain a renewal or bargain purchase option. The annual rentals are $27,653.77, payable at the beginning of each year. The Lessee Company agrees to pay all executory costs. The interest rate implicit in the lease is 12%, which is known by Lessee Company. The residual value of the property at the end of 10 years is estimated to be zero. The cost and fair value of the equipment to the lessor is $175,000. The lessor incurs no material initial direct costs. The collectibility of the rentals is reasonably assured, and there are no important uncertainties surrounding the amount of unreimbursable costs yet to be incurred by the lessor. Lessee incremental borrowing rate is 15% and it uses the straight-line method to record depreciation on similar equipment. In 2010 the lessee pays insurance of $1,900, property taxes of $1,300, and maintenance of $600; and in 2011 the lessee pays insurance of $1,800, property taxes of $1,200, and maintenance of $500.
Required:1. Identify the type of lease involved for the lessee and the lessor, and give reasons for your classifications.2. Prepare all the journal entries for both the lessee and the lessor for 2010 and 2011.
When an income statement shows data for segments of the organization, and data for each segment are added together to get totals for the whole organization:
In determining the amount of a provision, a company using IFRS should generally measure:(a) Using the midpoint of the range between the lowest possible loss and the highest po
Coldwell, Inc. issued a $100,000, 4-year, 10% note at face value to Flint Hills Bank on January 1, 2014, and received $100,000 cash. The note requires annual interest paymen
In Oregon, employers who are covered by the state worker's compensation law withhold employee contributions from the wages of covered employees at the rate of 2.8 for each hou
In addition to understanding the Internal Controls present within your client's company, the auditor must also evaluate whether these controls are in place, and implemented
Erwin and Eleanor have adjusted gross income of $12,000, no tax-exempt interest, and $16,000 of Social Security benefits. Erwin and Eleanor have adjusted gross income of $85,0
How does this set of guidelines relate to breakdowns of ethical reasoning? Provide at least 3 examples of how the guidelines work towards strengthening the business climate
Compute (1) the contribution margin for the current and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in th
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