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!
Question - Operating Lease - Lessee and Lessor
Cutthroat Aviation leased a Boeing 737 Max from Varden Leasing Services on January 1, 2019 in order to provide a short-term addition to its capacity. The lease term was 3-years, with annual payments of $4,250,000 due at the beginning of each year. Cutthroat does not know the interest rate implicit in the lease, but its own incremental borrowing rate is 5%. Varden Leasing had recently acquired the airplane from Boeing at a cost of $90 million, and is depreciating it over 30 years.
Required -
a. Prepare the appropriate JEs for both Cutthroat Aviation and Varden Leasing on January 1, 2019, the beginning of the lease.
b. Prepare an amortization schedule that shows the pattern of interest expense for Cutthroat Aviation over the lease term.
c. Prepare all appropriate adjusting JEs for both Cutthroat Aviation and Varden Leasing as of December 31, 2019.
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: - Explain the goals and uses of special journals.
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.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
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, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd