What is the value of the leased asset at inception of lease

Assignment Help Accounting Basics
Reference no: EM13131024

A firm leases equipment under a capital lease (analogous to an installment purchase) that calls for 12 semiannual payments of $39,014.40. The first payment is due at the inception of the lease. The annual rate on the lease is 6%. What is the value of the leased asset at inception of the lease?

Reference no: EM13131024

Questions Cloud

How much will patti have in the account : At the end of each quarter, Patti deposits $500 into an account that pays 12% interest compounded quarterly. How much will Patti have in the account in three years?
What exactly is an alkane and alkene : What exactly is an alkane and alkene? What is an ester?? does it relate to anything above?
Determine total production cost per unit for each product : Using direct labor hours as the basis for assigning overhead costs, determine total production cost per unit for each product line.
Find probability all the hotel-s rooms will be rented : Assume that demand for the upcoming weekend is normally distributed with a standard deviation of 30. What is the probability all the hotel's rooms will be rented?
What is the value of the leased asset at inception of lease : A firm leases equipment under a capital lease (analogous to an installment purchase) that calls for 12 semiannual payments of $39,014.40. The first payment is due at the inception of the lease. The annual rate on the lease is 6%. What is the value..
Weaknesses in consports expenditure cycle : Identify weaknesses in Consports expenditure cycle, explain the resulting problem, and suggest a control procedure that would best prevent or detect and correct each weakness. Use the labels next to each step to reference your answer.
Good judging-courtroom management and judicial misconduct : Explain the meaning of “good judging”, “courtroom management”, and “judicial misconduct”? Provide examples.
Illustrate what was the estimated manufacturing overhead : If the estimated direct labor cost was $315,000, illustrate what was the estimated manufacturing overhead? overhead based on machine hours?
Recycling newspapers : Write an equation representing the amount of money the class will make based on the number of tons of newspapers collected.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Expense in the statement of activities

The infrastructure has a basis of $400 million and would be depreciated over a 40 year life, if depreciation were charged. The amount that would be shown as expense in the Statement of Activities would be:

  Cost of the securities

Decker Corporation purchased 1,000 shares of Kent common stock at $75 per share plus $3,000 brokerage fees as a short-term investment. The shares were subsequently sold at $80 per share less $3,400 brokerage fees.

  Preparing consolidated financial statements

In preparing consolidated financial statements, what amount of this debt should be eliminated?

  Automated processes of ais

Help to develop flowcharts to show the flow of data into and from each of the four accounting systems analyzed. Explain the rationale and analysis behind the recommended course of action.

  Gains and loss in corporation

Does a corporation recognize a gain or loss when it distributes property as a dividend or in a redemption? My text just goes on and on regarding these topics. Is there a reference on the above that is more concise?

  Determining recognized gain or loss

On November 28, 2010, she sold 48 shares, which could not be specifically identified, for $576 and on December 8, 2010, she sold another 25 shares of $188, What was her recognized gain or loss?

  Depreciating the equipment on a straight-line basis

At the date of transfer the land and equipment had fair values of $72,000 and $65,000, respectively. Gleason had been depreciating the equipment on a straight-line basis over ten years with no salvage value.

  What are the major objectives of financial reporting

Identify the major users of financial reporting and the types of information each will use.

  Prepare an analysis and determine best plan

Prepare an analysis and determine which plan will result in the higher earnings per share of common stock. Recommend one plan to the board. Give reasons

  Tax reduction amount for donation

Allison is the sole shareholder of Destiny Corporation, which operates a travel agency for business travelers. Allison would like the corporation to donate some used computers to a local private school dedicated to the education of young ladies.

  Investigation of a tax problem

Investigation of a tax problem that involves a closed-fact situation means that:

  Compute the break-even point in dollars

Read Company reported actual sales of $2,000,000, and fixed costs of $480,000. The contribution margin ratio is 30%.Compute the break-even point in dollars, the margin of safety in dollars and the margin of safety ratio.

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!

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