Determining record interest expense

Reference no: EM13150041

On January 1, 2008, Dalton Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Dalton to make annual payments of $50,000 at the beginning of each year for five years with title to pass to Dalton at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Dalton uses the straight-line method of depreciation for all of its fixed assets. Dalton accordingly accounts for this lease transaction as a capital lease. The minimum lease payments were determined to have a present value of $208,493 at an effective interest rate of 10%. In 2009, Dalton should record interest expense of

Reference no: EM13150041

Questions Cloud

Basics of absorption costing net operating income : Determine each year's absorption costing net operating income. Present your answer in the form of a reconciliation report.

Dynamic technology : Here is a "dynamic technology" question - When it comes to automobile production it is an accepted fact that American automakers did not readily adopt and use Asian and European technologies in the production of cars. The result was a loss of global ..

Details of intercompany inventory sales : Pitts regularly sells inventory to Burris. Below you will find the details of intercompany inventory sales for the past three years:

How much heat is absorbed : How much heat is absorbed when 45.00 g of C(s) reacts in the pressence of excess SO2(g) to produce CS2(l) and CO(g) according to the following chemical equation?

Determining record interest expense : The minimum lease payments were determined to have a present value of $208,493 at an effective interest rate of 10%. In 2009, Dalton should record interest expense of

Basis of machine-hours : Simplex estimates that 11,700 direct labor and 14,300 machine-hours will be worked during the year. If overhead is applied on the basis of machine-hours, the overhead rate per hour will be:

What are the allele frequencies for the blood types : What are the allele frequencies for the blood types, genotype frequencies, and phenotype frequencies in this sample population?

Bond issue currently outstanding that has 25 years left : We have a bond issue currently outstanding that has 25 years left to maturity.the coupon rate is 9% and coupon are paid semi annually.the bond is currently selling for $908.72 per $1000 bond what is the cost of debt

What is the final temperature of the water : If 8.00 kJ of heat are added to 200. g of water at 20.0 C, what is the final temperature of the water?

User Account

All Pages