User Account

All Pages

Determine the price at which builders is selling equipment

Assignment Help Accounting Basics
Reference no: EM132922147

Question - On June 30, 2021, Georgia-Atlantic, Inc. leased warehouse equipment from Builders, Inc. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $681,881 over a 4-year lease term (also the asset's useful life), payable each June 30 and December 31, with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 9.0%, the same rate Builders used to calculate lease payment amounts. Builders manufactured the equipment at a cost of $4.2 million.

Required -

1. Determine the price at which Builders is "selling" the equipment (present value of the lease payments) at June 30, 2021.

2. What amount related to the lease would Builders report in its balance sheet at December 31, 2021 (ignore taxes)?

3. What line item amounts related to the lease would Builders report in its income statement for the year ended December 31, 2021 (ignore taxes)?

Reference no: EM132922147

Questions Cloud

Find a banner advertisement : Find a banner advertisement from a popular brand online and click on it. Where does it take you? Now compare that landing page to the company's direct URL. Expl
Csu widget factory : Upper management at the CSU Widget Factory does not understand why they have any liability when it comes to workplace violence.
Calculate the expected cash collections for may : Each month's credit sales are collected 60% in the month of sale and 40% in the month following the sale. Calculate the expected cash collections for May
Find linear regression model : Below is a dataset on household purchase behavior for a particular coffee brand for two consecutive months. The data has been normalized to the extent that each
Determine the price at which builders is selling equipment : Determine the price at which Builders is "selling" the equipment (present value of the lease payments) at June 30, 2021
What can you say about the impacts on the problem : What are your overall conclusions vis-a-vis solving, or at least mitigating the problem? What would you tell the mayor of the community to do
Louis armstrong west end blues : After having listened to Louis Armstrong's "West End Blues" on your own and with the Voice Thread lectures, write a short analysis of the recording.
Specific thoughts-observations and experiences : Share with the class some of your specific thoughts, observations, and experiences as both a writer and student in this course
Calculate a three-year cash flow statement for the project : The company expects to make $1,250,000 of revenue from the sales of the new product. Calculate a three-Year cash flow statement for the project

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