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Limited payment whole life insurance is a contract written for a given number of years after which the face value is automatically paid to the insured. True, False

For which of the following transactions would the use of the present value of an ordinary annuity concept be appropriate in calculating the present value of the asset obtained or the liability owed at the date of incurrence?   Group of answer choices   1)A capital lease is entered into with the initial lease payment due one month subsequent to the signing of the lease agreement. 2)A capital lease is entered into with the initial lease payment due upon the signing of the lease agreement. 3)A ten-year 8% bond is issued on January 2 with interest payable semiannually on January 2 and July 1 yielding 7%. 4)A ten-year 8% bond is issued on January 2 with interest payable semiannually on January 2 and July 1 yielding 9%.

X Co. can deduct life insurance premiums paid providing: O the life insurance policy is required as security on a loan from a financial institution O the company paid the life insurance policy within the year O the premium paid is for insurance on the president of X Co O the premium paid is reasonable in terms of cost

ed: Calculate the yearly payment that Alexis will charge Edgar under this lease agreement if payments are made on 1/1 of each year, beginning 1/1/19. a. o. Prepare all journal entries that would be made by Alexis (lessor) during 2019 and 2020 relating to this lease. . Prepare all journal entries that would be made by Edgar (lessee) during 2019 and 2020 relating to this lease.

Determine the income to be reported by ML partnership in 2020assuming the company opted to report income from improvement usingthe lump-sum method and spread-out method.

For which of the following would year-end accrual of a current liability be optional? a. Current portion of a long-term lease obligation that comes due next year b. A declared property dividend c. Sick pay benefits that accumulate but do not vest d. Short-term debt that is being refinanced on a long-term basis

Under a deferred annuity owned by a nongrantor trust, how does the annuity's death benefit operate?(Search Chapter 6) a. The death of the trust grantor triggers payout of the contract's death benefit and termination of the contract. b. The death of the primary annuitant triggers payout of the contract's death benefit and termination of the contract. c. The death of the trust beneficiary triggers payout of the contract's death benefit and termination of the contract. d. Annuities owned by a trust can continue in perpetuity; since trusts do not die, there is no death benefit payable from an annuity owned by a trust.

Wildhorse Manufacturing Ltd. has signed a lease agreement with Blossom Leasing Inc. to lease some specialized manufacturing equipment. The terms of the lease are as follows The lease is for 5 years commencing January 1, 2023 Wildhorse must pay Blossom $59,445 on January 1 of each year, beginning in 2023 Equipment of this type normally has an economic life of 6 years. Blossom has concluded based on its review of Wildhorse's financial statements, that there is no unusual credit risk in this situation Blossoms will not incur any further costs with regard to this leas Blossom purchases this equipment directly from the manufacturer at a cost of $225,329, and normally sells the equipment for $275,429 Wildhorse's borrowing rate is 7%. Blossom's impiled interest rate is 6%, which is known to Wildhorse at the time of negotiating the lease Wildhorse uses the straight-line method to depreciate similar equipment. Both Wildhorse and Blossom have calendar fiscal years (year end December 31), and…

Assume that DBP Leasing Corp. and Minasugbo Inc. sign a lease contract effective on January 1, 2019 where DBP Leasing leases to Minasugbo a bulldozer. The terms and provisions of the lease contract and other pertinent date are as follows: The term of the lease is five years. The lease agreement is non-cancelable, requiring equal rental payments of P20,711.11 at the beginning of each year (annuity-due basis).  The bulldozer has a fair value at the commencement of the lease of P100,000, an estimated economic life of five years, and a guaranteed residual value of P5,000. (Minasugbo expects that it is probable that the expected value of the residual value at the end of the lease will be greater than the guaranteed amount of P5,000.) The lease contains no renewal options. The bulldozer reverts to DBP Leasing at the termination of the lease. Minasugbo’s incremental borrowing rate is 5 percent per year. Minasugbo depreciates its equipment on a straight-line basis. DBP Leasing  sets the…

Owefix a. compute the amount of lease receiveable for the leaseb. discusd the bethre of the leasec. prepara an amoritization table for the lessee and lessor

On January 1, 2021, SRTB Company leases a fleet of stock delivery vehicles from Bray Motors, Inc. (Click the icon to view the lease terms.) Requirement a. Classify this lease agreement for both the lessor and the lessee. Begin by computing the present value of the lease payments for the lessee. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculation. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, XXXXXX Round your final answer to the nearest whole dollar.) The present value (PV) of the payments due under the lease is Before we classify the lease for the lessee and lessor, let's begin by identifying any of the Group I criteria that the lease meets. (Select all that apply) 1. The lease transfers ownership to the lessee at the end of the lease term. 2. The lessee is given an option to purchase the asset that the lessee is reasonably certain to…

What is a premium? A) the amount paid by the policyholder before the insurance policy starts paying on the claim B) the maximum amount a policy will pay out in any one year C) the amount paid by the policyholder to the insurer on a regular basis for the policy D) the amount paid after the deductible has been satisfied and until the out of pocket maximum has been reached

Accounting The Lessor Company leases equipment to the Lessee Company on January 1, 2020. The lease is appropriately recorded as a purchase for accounting purposes for Lessee and as a sale for accounting purposes for Lessor. The lease is for a ten-year period. Equal annual payments under the lease are $30,000 and are due on January 1 of each year. The first payment is made on January 1, 2022. The cost of the equipment on Lessor's accounting records is $100,000. The equipment has an estimated useful life of ten years with no residual value expected. The of interest contemplated by Lessor and Lessee is 9 percent. Assume that the present value of the lease payments equals the market value of the equipment (selling price). Assume this is a sales- type lease. A.Prepare the entry or entries required for Lessor on January 1, 2022. A.Prepare the entry or entries required for Lessor on December 31, 2022. A.Prepare the entry or entries required for Lessor on January 1, 2023. A.Prepare the entry…

When is a home considered under contract? When the buyer qualifies for a loan When the seller and buyer have signed the offer When the buyer signs the seller's offer When the 10-day option period is over

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please and thank you

Initial Direct Costs and Related Issues   On January 1, 2019, Amity Company leases a crane to Baltimore Company. The lease contains the following terms and provisions: • The lease is noncancelable and has a term of 10 years. • The lease does not contain a renewal or bargain purchase option. • The annual rentals are $3,870, payable at the beginning of each year. • Baltimore agrees to pay all executory costs directly to a third party. • The cost of the equipment to the lessor is $24,177.54. The fair value of the equipment is $25,700. • Amity incurs initial direct costs of $1,310.90. • The interest rate implicit in the lease is 12%. • Amity expects to collect all lease payments from Baltimore. • Amity estimates that the fair value at the end of the lease term will be $3,100 and that the economic life of the crane is 12 years. This value is not guaranteed by Baltimore.   Required: 1. Next Level What are initial direct costs? Discuss the accounting treatment of…