Reference no: EM13147721
Assume that on January 1, 2011, Kimberly-Clark Corp. signs a 10 yearr noncancleable lease agreement to lease a storage building from trevino storage company. The following information pertains to this lease agreement.
1. The agreement requires equal rental payments of $90,000 beginning on January 1, 2011.
2. The fair value of the building on January 1, 2011 is $550,000
3. The building has an estimated economic life of 12 years, with an unguaranteed residual value of $10,000. Kimberly-Clark depreciates similar buildings on the straight line method.
4.The lease nonrenewable. at the termination of the lease, the building reverts to the lessor.
5. Kimberly-clark's incremental borrowing rate in 12% per year. the lessor's implicit rate in not known by kimberly-clark.
6. The yearly rental payment includes $3,088.14 of executory costs related to taxes on the property.
Instructions:
Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2011 ans 2012. kimberly-clark's corporate year end is december 31. Show all calculations.
|
Determine the end value of n
: determine the end value of n in a hydrogen atom transition, if the electron starts in n=2 and the atom absorbs a photon of light with a frequency of 4.57X10^14 Hz
|
|
Find the probabiltiy of a fatal accident over lifetime
: the probability is 1 in 4 million that a single auto trip in the US will result in a fatality. Over a lifetime, an average driver takes 50,000 trips. What is the probabiltiy of a fatal accident over a lifetime. Explain.
|
|
Why does this not violate the second law of thermodynamics?
: When we construct a bridge or arrange chess pieces in their proper starting positions on a chessboard, we seem to increase order in the Universe. Why does this not violate the second law of thermodynamics?
|
|
Materials quantity variance for the month
: The following materials standards have been established for a particular product: What is the materials quantity variance for the month?
|
|
Journal entries on lessee books
: Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2011 ans 2012. kimberly-clark's corporate year end is december 31. Show all..
|
|
Explain why such governments would rather subsidize
: Does that face help explain why such governments would rather subsidize an industry’s export sales than its sales in the domestic market?
|
|
Calculate the final temperature of the solution
: A 14.0-g sample of CaCl2 is dissolved in 112 g of water, with both substances at 25.0°C. Calculate the final temperature of the solution assuming no heat lost to the surroundings and assuming the solution has a specific heat capacity of 4.18 J/°C ..
|
|
Why consumers price elasticity for ice cream elasticity
: Why might consumers’ price elasticity for ice cream cones once they are in an ice cream store be .20 and their longer-term price elasticity be 1.2?
|
|
What percent of the garages take hours to erect
: Determine the z values for 29 and 34 hours. What percent of the garages take between 32 hours and 34 hours to erect? What percent of the garages take between 29 hours and 34 hours to erect?
|