User Account

All Pages

Compute the present value of the minimum lease payments

Assignment Help Accounting Basics
Reference no: EM131604236

Problem - On January 1, 2017, Blossom Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Blossom to make annual payments of $8,560 at the beginning of each year, starting January 1, 2017. The machine has an estimated useful life of 6 years and a $4,800 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Blossom uses the straight-line method of depreciation for all of its plant assets. Blossom's incremental borrowing rate is 10%, and the lessor's implicit rate is unknown.

Compute the present value of the minimum lease payments.

Prepare all necessary journal entries for Blossom for this lease through January 1, 2018.

Reference no: EM131604236

Questions Cloud

Prepare a detailed multi-step income statement : An inexperienced accountant prepared this condensed income statement for Simon Company, Prepare a detailed multi-step income statement with a brief explanation
Market segmentation and the marketing mix : The difference between target marketing and market segmentation. Target marketing targets a specific audience like school clothes which are just for students.
How company was meeting expectation on the characteristics : Describe how you would determine how the company was meeting expectations on these characteristics. What does this tell you about the variables?
Find the radius r at which ar has a global minimum : Four equally massive particles can be made to rotate, equally spaced, around a circle of radius r. This is physically possible provided the radius and period T.
Compute the present value of the minimum lease payments : On January 1, 2017, Blossom Corporation signed a 5-year noncancelable lease for a machine. Compute the present value of the minimum lease payments
Prepare a flowchart of the back-stage : Prepare a flowchart of the back-stage as well as the front-stage operations of this business - Explanation of significance of the service encounter
Estimate the load which maximizes the rate : A bird such as a starling feeds worms to its young. To collect worms, the bird flies to a site where worms are to be found, picks up several in its beak.
Develop a system for classification of mood disorders : What would you include and exclude if you had to develop a system for classification of mood disorders
Describe the changes you would like to see : Create a power point showing the product that you would like to see revamped. Describe the changes you would like to see.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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