Brecker company leases an automobile with a fair value of

Assignment Help Accounting Basics

Reference no: EM13613450

Brecker Company leases an automobile with a fair value of $10,906 from Emporia Motors, Inc., on the following terms.

1. Noncancelable term of 50 months.

2. Rental of $250 per month (at end of each month). (The present value at 1% per month is $9,800.)

3. Estimated residual value after 50 months is $1,180. (The present value at 1% per month is $715.) Brecker Company guarantees the residual value of $1,180.

4. Estimated economic life of the automobile is 60 months.

5. Brecker Company's incremental borrowing rate is 12% a year (1% a month). Emporia's implicit rate is unknown.

a) Record the first month's depreciation on Brecker Company's books (assume straight-line).

b) Record the first month's lease payment.

Reference no: EM13613450

Questions Cloud

Calculate the acceleration in ms2 with which the iron ball : an iron ball is thrown into the atlantic ocean. density of iron is 7856 kgm3. density of salt water is 1020 kgm3.

The nevens company use a periodic inventory system during : the nevens company use a periodic inventory system. during november the following transactions occurred. november 1st

A proton is located at the origin and a second proton is : a proton is located at the origin and a second proton is located on the x-axis at x 6.78 fm 1 fm 10-15 m.a calculate

It is decided to provide a lateral bracing in all : a 25-mm-diameter steel column with a length of 950 mm was analyzed to determine the critical buckling load. the column

Brecker company leases an automobile with a fair value of : brecker company leases an automobile with a fair value of 10906 from emporia motors inc. on the following terms.1.

The water level in the dam is upto the brim of the wall : one of the walls of a dam is at 67 degrees to the horizontal. the wall is 8 m long and 40 m wide. density of the water

During the 3pm to 5pm time period cars arrive at a banks : during the 3pm to 5pm time period cars arrive at a banks drive through window at an average rate of 15 customers per

Determine the critical load on a steel column having a : determine the critical load on a steel column having a square cross section 12 mm on a side with a length of 300 mm.

Lowell companys manufacturing overhead budget for the first : lowell companys manufacturing overhead budget for the first quarter of 2014 contained the following data. variable

User Account

All Pages