User Account

All Pages

What is the lease term and the lease payments

Assignment Help Accounting Basics
Reference no: EM132525151

Question - Ankor, a lessee, enters into a lease of a building with an initial noncancelable term of 10 years and an option to extend for an additional five years (at commencement, deemed not reasonably certain to exercise). Fixed lease payments are $50,000 per year during the initial noncancelable term and $55,000 per year during the optional five year period. In connection with the lease, Ankor will receive a cash payment of $10,000 as an incentive six months after lease commencement. What is the lease term and the lease payments?

a. 15 years; $765,000

b. 15 years; $775,000

c. None of these are correct

d. 10 years; $500,000

e. 10 years, $490,000

Reference no: EM132525151

Questions Cloud

what amount of the loss would have been allocated to Bach : ABC share profits and losses in a ratio of 3:2:5. If the other assets were sold for $234,000, what amount of the loss would have been allocated to Bach
Purposeful and unintentional interference : The NSTAC Report to the President on Commercial Satellite Communications Mission Assurance reviews a number of possible causes for satellite interference
Explain five principal risks for the company : Associated British Foods PLC is a leader in grocery, agriculture and retail products in the UK and the Company is facing risks and opportunities arising from
What is the required rate of return on the project : A project under consideration has an internal rate of return of 15% and a beta of 0.7. The risk-free rate is 5%, and the expected rate of return on the market p
What is the lease term and the lease payments : Ankor will receive a cash payment of $10,000 as an incentive six months after lease commencement. What is the lease term and the lease payments
Project npv for the initial investment in the building : Solar Energy Corp. (SEC) is reviewing a possible investment in a new plant for a new product line. The new product is expected to have a life of 10 years,
Create a visio diagram of the organization : Create a Visio diagram of the organization of the departments at TCC. Remember, we need to understand the organization to make sure that the people who are.
Find what is the amount of the firm current assets : Find What is the amount of the firm current assets? Killer Whale, Inc. has the balance sheet statement items: total current liabilities
How much cumulative compensation expense would be recognized : One executive leaves the company on January 1, 20X9. How much cumulative compensation expense would be recognized for these awards at the end of 4 years

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