Leases, Financial Accounting

Company A(lessee) will rent inventory for you for 3 years rather than buying it for the regular price of $240,000. Normally these units, which cost us $120,000 to produce, will last 5 years and have no residual value at the end of that time. At the end of 3 years though they usually have a residual value of $12,000 but you could only get the customer to guarantee $8,000 of this. The agreement calls for 6 semi-annual payments of $40,000 each on May 1 and November 1 commencing in 20X5. By the way when payments amount were figure, they used 6& interest rate and you are not sure if the information is collected properly at that interest.
Posted Date: 10/13/2012 5:23:04 PM | Location : United States







Related Discussions:- Leases, Assignment Help, Ask Question on Leases, Get Answer, Expert's Help, Leases Discussions

Write discussion on Leases
Your posts are moderated
Related Questions
what is general legacy

COMMITTEE OF INSPECTION Appointment : A committee of inspection may be appointed by the creditors at their first or any subsequent meeting to supervise the trustee.

Lockheed Martin's management wishes to find out whether they have excess debt capacity. Its current market value of equity is $40 b and its book value of debt is $


Mr. Wong currently running a small manufacturing business.  The Trial Balance of the business at 31 March 2011 is as follows:

Calculation of the actuarial gain/losses in year to 31 December 2010 FV of plan assets PV of plan liabilities $000

Natural Furniture Company manufactures three outdoor products, benches, chairs, and tables. Every product must pass by the following departments before it is shipped: sanding, sawi

#questBackground: The SEC set up the Work Plan which sets forth specific areas and factors to consider before potentially transitioning our current financial reporting system for U

Troubled Debt Restructuring - Agreement between CREDITOR and DEBTOR which amends the terms of a DEBT which has little chance of being paid in accordance with its contractual terms.

Distribution of Assets 1. Proof of debts : If the company is insolvent, the rules in bankruptcy as to provable debts, secured creditors, interests, mutual dealings, annuiti