17, Inc. leased a teachine on January 1, 2023. The lease requires annual payments of strate on December 31 for ten years with the first payment being due December 31, 2023. The interest rate on the lease is 10%, and ZZ, Inc. will use the straight-line method to record the amortization of the leased asset. At January 1, 2023, the machine had a twelve-year remaining useful life and the lease contract requires the machine to be returned to the lessor at the end of the lease. Calculate the lease liability balance at December 31, 2024 after the second lease payment is made Calculate the amount of the lease liability balance at December 31, 2024 that would be classified as a current liability Calculate the total amount of cash outflow related to this lease that would be reported in the operating ctivities section of ZZ., Inc.'s 2024 statement of cash flows. Enter your answer on the answer sheet as number. Do not put a minus sign or write the word outflow after your number.
17, Inc. leased a teachine on January 1, 2023. The lease requires annual payments of strate on December 31 for ten years with the first payment being due December 31, 2023. The interest rate on the lease is 10%, and ZZ, Inc. will use the straight-line method to record the amortization of the leased asset. At January 1, 2023, the machine had a twelve-year remaining useful life and the lease contract requires the machine to be returned to the lessor at the end of the lease. Calculate the lease liability balance at December 31, 2024 after the second lease payment is made Calculate the amount of the lease liability balance at December 31, 2024 that would be classified as a current liability Calculate the total amount of cash outflow related to this lease that would be reported in the operating ctivities section of ZZ., Inc.'s 2024 statement of cash flows. Enter your answer on the answer sheet as number. Do not put a minus sign or write the word outflow after your number.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please use the rate percentage tables I have provided, to answer the question
Transcribed Image Text:Periods
4
5
6
0,888
0.863
0.837
10
0744
12 0,701
15
Periods
4
5
6
20
10
12
Periods
15
20
Periods
4
5
6
10
3%
1.126
1.159
1.194
1.344
1.425
1.558
1.805
5.417
8.530
12
9.950
15
11.938
20 14.877
3.717
4.580
Present Value of a Lump-Sum
Rate of interest per period in percent
42
42
0.855
0,792
0.747
0.642 0.555
0.554
5%
0.823
0.784
0.746
0.614
0.557
0,481
0.456 0.377
0.822
0.790
0.676
0,624
Future Value of a Lump-Sum
1.170
1.217
1.265
1.480
Rate of interest per period in percent
4%
1.601
1,801
2.191
4%
3.630
5%
1.216
0,705
0.558
0.495
0.417
0.312
1:276
1.340
1.629
1.796
2,079
2.653
Present Value of an Annuity
3%
4%
4 4.184
4,246
5 5,309
5.416
6 6.468 6.633
6%
1.262
1.338
1.419
1.791
2012
2.397
3.207
10 11.464 12.006
12
15
20 26.870 29.778
Rate of interest per period in percent
5%
3.546
4.329
4.452
5.242
5.076
8.111
7.722
9.400
8.863
8.380
11.118
10.380 9.712
13.590 12.450 11.470
10%
0.683
0.621
0.564
0.386
0.319
0.239
0.149
10%
1,464
1611
6%
3.465
4.212 3.791
4.355
1.772
2.594
3.138
4.177
6.727
5.637
6.975
6.802
12.578 13.181
15.917
16,869
14.190 15.025
18.599 20.024 21.579 23.276
33.066
36.786
Future Value of an Annuity
Rate of interest per period in percent
5%
6%
10%
4.310
4.375 4.641
5.526
6.105
4.917
7.360 6.150
6.814
7.600
8.514
10%
3.170
7.716
15.937
21.384
31.772
57.275
12%
0:636
0.567
0.507
0.322
0.257
0.183
0.104
12%
1.574
1.762
1.974
3.106
3.896
5.474
9.646
12%
3.037
3.605
4.111
5.650
6.194
6,811
7.469
12%
4,779
6.353
8.115
17.549
24.133
37.280
72.052
Transcribed Image Text:ce the following information for questions 29-31.
12, Inc. leased a machine on January 1, 2023. The lease requires annual payments of $15,000 every
December 31 for ten years with the first payment being due December 31, 2023. The interest rate on
the lease is 10%, and ZZ, Inc. will use the straight-line method to record the amortization of the leased
asset. At January 1, 2023, the machine had a twelve-year remaining useful life and the lease contract
requires the machine to be returned to the lessor at the end of the lease.
Calculate the lease liability balance at December 31, 2024 after the second lease payment is made
Calculate the amount of the lease liability balance at December 31, 2024 that would be classified
as a current liability
Calculate the total amount of cash outflow related to this lease that would be reported in the operating
ctivities section of ZZ, Inc.'s 2024 statement of cash flows. Enter your answer on the answer sheet as
number. Do not put a minus sign or write the word outflow after your number.
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