Reference no: EM133185089
Question - ABC Company is under your audit for year 2022, the summary of the related lease transactions for the year under audit were as follows:
Lease of floor building - On December 31, 2019, ABC leased a building to F Company for seven-year period expiring December 31, 2026. Equal annual payments of P2,000,000 are due on December 31 of each year, beginning with December 31, 2019. The lease is properly classified as a finance lease. At inception of the lease, F paid P350,000 as commission to agent and estimated that P400,000 will be paid to restore the property at the end of lease term. The building has a useful life of 20 years at inception of the lease. F guaranteed a residual value of P200,000 at the end of lease term. Assuming all payments are made on time and the rate implicit and effective is at 12%.
Lease of equipment - On January 1, 2022, ABC Company (lessor) enters into a ten-year lease of equipment to LO Corporation (lessee). The equipment has estimated useful life of 15 years. Lease payments are P380,000 per year all payable at the beginning of each year. The fair value of the leased asset on this date P3,132,161. The rate implicit in the lease is 6%. LO Guaranteed a residual value of P300,000. ABC's cost for this asset is P2,400,000. ABC used the lease contract to sold the equipment to its customers who do not have enough cash to buy outrightly.
How much is the balance of lease receivable should ABC report in its statement of financial position as of December 31, 2022?
|
Calculate your percentage increase in real purchasing power
: You have chosen to set aside $15000 to purchase a new car in one year. Calculate your percentage increase in real purchasing power
|
|
Write an overview of the company liquidity ratios
: Choose a summary of Coca-Cola and write an overview of the company's liquidity ratios relative to the industry averages and to their competitor Pepsico
|
|
What is the company return on investment
: A company has a capital employed of P 200,000. It has a cost of capital of 12% per year. Its residual income is P 36,000. What is the company's return
|
|
How much is total interest income should abc company report
: How much is the total interest income should ABC Company report in its profit or loss for the year ended December 31, 2022
|
|
How much is balance of lease receivable should abc report
: How much is the balance of lease receivable should ABC report in its statement of financial position as of December 31, 2022
|
|
How the study was conducted to meet the research objectives
: Main issue that became the focus of your study, justifications of why your research is necessary and how the thesis is organized
|
|
Compute the net income using the standard variable costing
: The selling and administrative expenses are as follows: Fixed cost totaled P 600,000 and variable cost per unit is P 8.00. Compute the net income
|
|
What is the company degree of operating leverage
: The following are ABC's balances for last month: sales, P2 million; variable expenses, P1.4 million; What is the company degree of operating leverage
|
|
Calculate the volume variance
: Actual fixed overhead costs were P430,000, actual production was 36,000 units, and sales were 30,000 units. Calculate the volume variance
|