User Account

All Pages

What is the fair value of the equipment

Assignment Help Accounting Basics
Reference no: EM132454432

Problem - Kensington Ltd decides to lease some equipment from Piccadilly Ltd on the following terms:

Duration of lease 15 years

Life of leased asset 17 years

Unguaranteed residual $5,000

Lease payment $6,000 at lease inception

Annual lease payments (in arrears) $4,500 per year (15 payments)

If the interest rate implicit in the lease is 8%, what is the fair value of the equipment at the inception of the lease?

A. $44,518

B. $46,094

C. $40,094

D. $48,399

Reference no: EM132454432

Questions Cloud

Slide Designs and Visual Aides : Consider the importance of visuals in connecting with an audience. Discuss a moment or experience in your life when a picture,
Leadership skills and develop plan for moving forward : Develop a personal leadership philosophy and support your ideas with material from this course and outside research.
Determine which waste anesthetic gas removal method : Determine which waste anesthetic gas removal method is best and why. Can waste anesthetic gas be removed by standard medical vacuum, why or why not?
Discuss architects administration : What should the project manager do to resolve this issue? What could the school have done to prevent this from happening?Architects' Administration
What is the fair value of the equipment : Lease payment $6,000 at lease inception If the interest rate implicit in the lease is 8%, what is the fair value of the equipment at the inception of the lease
Research the exxon valdez accident : What is sustainability? Describe how LCA (Life Cycle Assessment) helps in developing environmental friendly products? (write at least 2 paragraphs).
Discuss relationship between time and budget : Outline what you believe the action plan should be to bring Project AKU in on-schedule, on-budget and meet the customer requirements.
Compute the labor rate and efficiency variances for April : Corex Company produces several products in its factory, including a karate robe. Compute the labor rate and efficiency variances for April
Define what drive out fear means : What tools have we introduced in the 2nd half of the semester that could help "Drive Out Fear?" Why and how would they support this desire?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

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

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

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 and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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