User Account

All Pages

Compute the annual rental lease payments

Assignment Help Financial Accounting
Reference no: EM131256246

Elephant Services leased an asset to Northridge Corporation on January 1, 2015. The cost of the asset to Elephant was $25,000.

Terms of the lease are specified below:

·      Lease term is six years

·      The annual discount rate is 20%

·      The payments are due on December 31 of each year

·      The lease is a capital lease and a direct-financing lease

·      Elephant Services will receive the asset at the end of the      lease term

·      The estimated residual value at the time the lease reverts to Elephant Services totals $5,000

          Compute the annual rental lease payments.

Round all calculations to the nearest dollar. You are also required to utilize the time value tables from the textbook. Do not compute the answers with a financial calculator as if your computations are not within +/- $2 of my solution then you will not receive any credit.

Reference no: EM131256246

Questions Cloud

How much can they deduct as moving expenses : Dorian and Erin file a joint return. In February 2016, Dorian and Erin moved from moved from Minneapolis to Washington, DC, where Dorian was starting a new job. Dorian drove the family car to Washington, DC, a trip of 1,100 miles. How much can they d..
Analyze the risk factors for breast cancer : Include the pathological processes associated with breast cancer. What role does the BRCA1 gene contribute to managing the patient's care? Describe and explain the role of the BRCA1 and breast cancer 2, early onset (BRCA2) gene in contribution as ..
Find the standard time for the blood test : How long should a typical agent be expected to take to make seat assignments? - Find the normal time for this process. -  Find the standard time for this blood test.
Specific key environmental forces : Explain what the specific key environmental forces are that created an opportunity for your company. Identify if there have been changes in the purchasing patterns of your organization's target market in recent years.
Compute the annual rental lease payments : Elephant Services leased an asset to Northridge Corporation on January 1, 2015. The cost of the asset to Elephant was $25,000. Compute the annual rental lease payments.
Respiratory diseases and cancers : 'What role does the environment play in causing major chronic illness such as respiratory diseases and cancers? What types of environmental factors that affect health are present where you live? How do you deal with these potentially harmful envir..
What you plan to implement in your life : What you liked and/or disliked about the book. What you plan to implement in your life. A financial quote that you liked from the book with the page number.
Opinion of health care delivery in the united states : 'What is your opinion of health care delivery in the United States? Is it adequate? How can health care delivery be improved in the United States? Consider private and public health delivery options.
Write an insert statement that adds this row : Write an INSERT statement that adds this row to the Categories table: category_name: Brass and Code the INSERT statement so MySQL automatically generates the category_id column

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is amount of outstanding checks

What is amount of outstanding checks at the end of May - wrote checks in the amount of $37,000. In June, checks in amount of $50,632 were written.

  Several transactions related to accounts receivable occurred

Several transactions related to accounts receivable occurred during 2014. What is the ending balance in accounts receivable and allowance for bad debts accounts at December 31, 2014 (after adjustment)?

  Questiona paper for a government nonprofit accounting

questiona paper for a government nonprofit accounting class.pension trust fundharvey city has only one agency fund and

  Calculate sunrise? predetermined overhead allocation rate

Construction, Inc. is a home builder in Arizona. Sunrise uses a job order costing system in which each house is a job. Because it constructs houses, the company uses an account titled Construction Overhead. The company applies overhead based on estim..

  Compute the contribution margin for the current year

Viejol Corporation has collected the following information after its first year of sales. Sales were $1,600,000 on 100,000 units, selling expenses $220,000 (40% variable and 60% fixed), direct materials $508,000, direct labor $282,200, Compute (1) th..

  Correct balance in the cash account

The cash account shows a balance of $40,000 before reconciliation. The bank statement does not include a deposit of $9,200 made on the last day of the month. The bank statement shows a collection by the bank of $3,960 and a customer’s check for $1,30..

  Discuss the advantages of using a perpetual inventory system

Discuss the advantages and disadvantages of using a perpetual inventory system. From the data presented in this case, is there any indication of the adequacy of inventory levels during the year?

  Assume that the equity method is applied

Stokes reported a loss of $60,000 for 2010, $40,000 from continuing operations and $20,000 from an extraordinary loss. The company still manages to pay a $10,000 cash dividend during the year.

  Capital balances at the beginning of the current year

The Distance Plus Partnership has the following capital balances at the beginning of the current year. If Sergio invests $100,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used...

  Calculation of preferred stock common stock and selling

calculation of preferred stock common stock and selling price.interpreting the stockholders equity section of the

  Used straight line depreciation method

Reno company purchased equipment on January 1, 2012 for $82,000. The equipment is estimated to have a 5 year life and a salvage value of $5000. The company used straight line depreciation method.

  The partnership agreement of nieto keller and pickert

the partnership agreement of nieto keller and pickert provides for the subsequent income ratio a nieto the managing

Free Assignment Quote

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd