Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
On 1 July 2019, Fisher Ltd decides to lease a cargo ship from XFinance Ltd. The term of the lease is 20 years. The implicit interest rate in the lease is 10 per cent. The fair value of the cargo ship at the commencement of the lease is $2,215,560. The lease is non-cancellable, and requires a lease payment of $300,000 on inception of the lease (on 1 July 2019) and lease payments of $250,000 on 30 June each year (starting 30 June 2020). Included within the $250,000 lease payments is an amount of $25,000 representing payment to the lessor for the insurance and maintenance of the cargo ship. There is no residual payment required. Annuity factor, n=20; r = 10% is 8.5136.
Required:
Question a) Prove that the interest rate implicit in the lease is 10 per cent.
Question b) Provide the entries for the lease in the books of Fisher Ltd as at 1 July 2019, and 30 June 2020.
Question c) Provide the entries for the lease in the books of XFinance Ltd as at 1 July 2019, and 30 June 2020.
What is the best explanation for the fact that the dollars spent on food have risen since the early 1980s but that food costs less now than it did then?
Use the information below to answer the following questions: C = 4000 + .75YD
Identify and explain what are the two main branches and two sub-branches that fall under each category
How the databases would be measured on initial recognition and subsequent to initial recognition, and Whether the useful life of the databases
Was the evidence planted at the scene in your opinion? What is your opinion of the case after reading about the evidence?
Define the nominal exchange rate as the foreign price of domestic currency, e.g. the amount of Yen per dollar. When the interest parity condition holds
Determine the amount that, in your judgement, Vulcan Metals Ltd should recognise as a provision as at 30 June 2020. Justify the approach
Discuss the significance of a defendant's 6th Amendment guarantee to be able to confront witnesses that would testify and/or offer evidence against defendant
Prepare the statement of owner's equity for the year ended December 31, 2016. 9. Prepare the balance sheet at December 31, 2016.
Explain and define the different concepts of the essay topic. Explain how the conduct satisfied the different elements of the crime or topic of the essay.
Describe the approproate actions, compute the necessary workings and show the necessary journal entries with their narations based on MFRS110 Events
Prepare the adjustments made at December 31, 2008 and 2009. Prepare the necessary journal entry to recognize 2009 interest to date and the first interest payment on January 31, 2009.
Why were inventories recorded at market value? What are consignment inventories, and why were they excluded from the balance sheet valuation?
Does Lowe's use the direct or indirect method to report cash flows from operating activities? How can you be sure about this? Include in your answer the first three items in the Cash from Operations section.
Mitch invests #200,000 in a city of Vacaville bond that pays 6 percent interet. Alternatively, Melinda could have invested the 200,000 in a bond recently issued by sincething Inc. that pays 8 percent interest with similar risk and other nontax charac..
the company's receivable from Novinger Inc. is not collectible and thus management authorizes a write-off of $2,000. On 4th March, 2012, Tatum Co. receives payment of $2,000 in full from Novinger Inc.
Evaluate the break-even corporate tax rate which makes the company indifferent between the two investments?
Eastman Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following.
Discuss What is the relationship between net income and cashflow from operating, investing, and financing activities for a company.
Compute Blacksmith's earnings per share for 2012. Start with income from continuing operations. All income and loss amounts are net of income tax.
Prepare the necessary adjusting entries at June 30. Prepare the bank reconciliation at June 30. The bank statement from Canada Bank on that date showed
Flynn Company purchased 75 Rinehart Company 7%, 10-year, $1,330 bonds on January 1, 2017, for $99,750.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: info@expertsmind.com
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd