User Account

All Pages

What is the annual rental over the lease term

Assignment Help Financial Accounting
Reference no: EM132518363

DD Inc. is engaged in leasing equipment. Such equipment was delivered to a lessee on January 1, 2019 under a direct financing lease with the following provisions:

Cost of Equipment                                                        4,361,200

Unguaranteed Residual Value                                            200,000

Useful life and lease term                                                   8 years

Implicit Interest Rate                                                         10%

Present value of an ordinary annuity of 1 for 8 years at 10%     5.335

Present value of 1 for 8 years at 10%                                   0.466

  • The annual rental is payable at the end of each year. The equipment will revert to the lessor upon the lease expiration.

Question 1: What is the annual rental over the lease term?

Reference no: EM132518363

Questions Cloud

What is the total financial revenue over the lease term : What is the total financial revenue over the lease term? GG Na Inc. Uses leases as a method of selling its products. In 2019 the Company completed
Discuss the scope of cloud computing audit for business : Cloud computing/cloud security: discuss the scope of a cloud computing audit for your business.
Total output up to time : Suppose a company measures the output from a process as y = 2x2 - 3x, where y is the total output up to time x. how fast is the output changing
What are the activities the architect must execute : Briefly respond to all the following questions. Make sure to explain and backup your responses with facts and examples. This assignment should be in APA format.
What is the annual rental over the lease term : What is the annual rental over the lease term? DD Inc. is engaged in leasing equipment. Such equipment was delivered to a lessee on January 1, 2019
Implement error handling and report test results : Implement error handling and report test results. Discuss how asymptotic analysis can be used to assess the effectiveness of an algorithm
Provide a comment on the accounting treatment done : Provide a Comment on the accounting treatment done by the company in context of the relevant AS. A company capitalizes interest cost of holding investments
What is the total impact on output from congress policy : Suppose the marginal propensity to consume is 0.6. Assuming no crowding out effect, what is the total impact on output from Congress' policy?
Explain the benefits and the vulnerabilities : Select one of these biometric techniques and explain the benefits and the vulnerabilities associated with that method in 3-4 paragraphs.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Estimate the companys energy cost behavior and express it

Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Predict the energy cost for a month in which 26,000 pints of applesauce are produced.

  When did you earn your revenue for both parties

When did you earn your revenue for both parties? What caused you to earn the revenue? Did you earn the revenue at the moment you received cash?

  Goodwill is reported on a consolidated balance sheet only

goodwill is reported on a consolidated balance sheet only if it was acquired in the merger or acquisition.nbspnbsp

  Calculate the sum of ending inventory

Calculate the sum of ending inventory and cost of goods sold - Compute the ending inventory at September 30 and cost of goods sold using the FIFO

  How much can nelsons short-term debt increase

How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.2? Do not round intermediate calculations

  Calculate the firm turnover and average total assets

Firm E has net income of $150,000, sales of $2,500,000, and ROI of 15%. Calculate the firm's turnover and average total assets. (Omit the "tiny_mce_markerquot; sign in your response.) Turnover $ Average total assets.

  Complete company cash budget for the upcoming fiscal year

Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: Complete the company's cash budget for the upcoming fiscal year.

  Eurocurrency market-what is one-year forward exchange rate

The spot €:$ is equal to 1.1795. The one-year interest rates on the Eurocurrency market are 4% in euros and 5% in U.S. dollars. What is the one-year forward exchange rate?

  Compute arrows direct material and direct labor variances

Arrow Enterprises uses a standard costing system. The standard cost sheet for product no. 549 follows. Compute Arrow's direct material variances. Compute Arrow's direct labor variances. Compute Arrow's variances for factory overhead.

  What is the project npv

A project has an initial cost of $66,350, expected net cash inflows of $11,000 per year for 11 years, and a cost of capital of 9%. What is the project's NPV?

  About the operating data

Operating data for Navarro Corporation are presented below. 2015 2014 Net sales $750,000 $600,000 Cost of goods sold 465,000 390,000 Selling expenses 105,000 66,000 Administrative expenses 60,000 54,000 Income tax expense 36,000 27,000 Net income 84,..

  Determine the ror if this investment for the following cases

A gold mine can be purchased for $100 million. Determine the ROR if this investment for the following cases. The estimated useful life of the mine is 10 years.

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd