Company will convert the operating lease to capital lease

Reference no: EM13588910

Company will convert the operating lease to capital lease. Please see information below to determine the present value of projected operating lease payment and lease amortization.

Instructions:

a] Estimate the length of the remaining period beyond 3 year of operating lease

b]Beginning year of lease balance of 2004 is $4,500 with 4.5% as a discount rate to determining the present value.

c] The lease payments for 2004 - 2006 is $400 in each year, thereafter is $4,000. The estimated payments after 2006 are assumed equal to the 2006 payment and continue for the estimated length of the remaining period.

d] Please set up the table as follow. please Exhibit 3.7 on page 152 as reference.

e] Please show your calculation.

Reference no: EM13588910

Questions Cloud

Eugene and velma are married for 2012 eugene earned 25000 : eugene and velma are married. for 2012 eugene earned 25000 and velma earned 30000. they have decided to file separate

What are internal controls why do companies need them what : what are internal controls? why do companies need them? what are some examples of internal controls? who is responsible

The city of shipley maintains an employee retirement fund a : the city of shipley maintains an employee retirement fund a single-employer defined benefit plan that provides annuity

Xyz company purchased inventory for 3450 on account the : xyz company purchased inventory for 3450 on account. the discount terms were 415 n30. xyz returned merchandise in the

Company will convert the operating lease to capital lease : company will convert the operating lease to capital lease. please see information below to determine the present value

Edgar co acquired 60 of stendall co on january 1 2011 : edgar co. acquired 60 of stendall co. on january 1 2011. during 2011 edgar made several sales of inventory to stendall.

In hiv patient how does readiness compare to non readiness : in hiv patient how does readiness compare to non readiness affect hiv treatment adherence and prevent hiv drug

Why are expenses paid for in advance reported as assets : why are expenses paid for in advance reported as assets? what happens to this asset as time passes and what are the

On january 1 2011 grace company had an 13500 balance in the : on january 1 2011 grace company had an 13500 balance in the accounts receivable account and a zero balance in the

User Account

All Pages