2 points Seve Aret A leasehold interest is subject to a rent fised at $20.000 pa. for 10 years, Iir the market analysis shows that the appropriate Vears Purchase (YPiaS10 and the full market rent of the property is $45.000, calculate the market value of this leasehold interest. $375,A50 $275.580 $120.150 $133.500

2 points Seve Aret A leasehold interest is subject to a rent fised at $20.000 pa. for 10 years, Iir the market analysis shows that the appropriate Vears Purchase (YPiaS10 and the full market rent of the property is $45.000, calculate the market value of this leasehold interest. $375,A50 $275.580 $120.150 $133.500

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter19: Lease Financing

Section: Chapter Questions

Problem 4P

See similar textbooks

Similar questions

O e. $300,000 Jestion 3 For an operating lease, which statement is TRUE? ot yet swered Select one: ints out of O a. The Right of Use asset amortization amount will decrease each year. O b. Annual Lease Expense will be the amortization of the Right of Use asset less that year's interest expense. Flag question Oc. The recorded Lease Expense amount will be the same each year. O d. The annual amortization of the Right of Use asset will be debited to Amortization Expense each year. O e. To compute the cost of the Right of Use asset, the lessee will use the incremental rate, if known. estion 4 Indicate the type of Deferred Tax account created by Unearned Revenues and Accrued Revenues, respectively: yet wered Select one: nts out of O a. Asset, Asset O b. Liability, Asset O c.Asset, Liability O d. Liability, Liability Flag question stion 5 Which of the following requires intraperiod tax allocation? yet wered Select one: nts out of O a. Discontinued Operations Loss O b. Estimated Warranty…
What is the correct answer please
Problem 6. Sales and Leaseback On Januar y 1 20х1, Entity sold building to Entity and a simultaneously leased it back. Additional information follows : Fair value of building 1,000,000 Carrying amount of building 800,000 Remaining useful life of building 10 years Lease Term 5 years Annual rent payable at the end of each year 100,000 Implicit interest rate equal to market rate 12% The transfer qualifies as a sale. Requirements (Independent cases) : а. If the sales price is P1,000,000 which is equal to fair value compute t he following under the seller-lessee accounting i. Lease liability ii. Right of use Asset iii. Gain or Loss iv. Journal entries on January 1, 20x1 b. If the sales price is P1,000,000 which is equal to fair value compute the following under the buyer-lessor acco unting i. Gross Investment ii. Net Investment iii. Unearned Interest Income iv. Journal entries on January 1, 20x1 c. Same requirements in a and b but the sales price is P1,100,000 which is above the fair value…
Problem 1 At the beginning of the current year, an entity leased an equipment from a lessor with the following pertinent information: 1,000,000 400,000 300,000 100,000 700,000 200,000 500,000 5 years 8 years 10% Annual rental payable at the end of each year Initial direct cost paid Lease bonus paid to lessor before commencement of the lease Lease incentive received Discounted amount of restoring building as required by contract Leasehold improvement Purchase option that is reasonably certain to be exercised Lease term Useful life of building Implicit interest rate Incremental borrowing rate 12% What is the initial lease liability? Select the correct response: 4,290,000
1-3
View Policies Current Attempt in Progress Assume Lessor Corporation wants to recover fair value, plus interest at 12% for its investment of $160,000 in an asset that is to be leased to Lessee Corporation for five years with the annual rental due in advance each year. Click here to view the factor table Calculate, using PV tables, the amount of the annual rental payment, assuming there is no purchase option that is reasonably certain to be exercised by the lesser (under IFRS) and no bargain purchase option (under ASPE) or residual value at the end of the lease. (Round factor values to 5 decimal places, eg: 1.25124, Round answer to 2 decimal places, es 52.75) Annual Rental Payment S eTextbook and Media Sean for Later Attempts: 0 of 3 used Submit Answer
Homework 1 of Chapter 15. Q1. Python Company leased equipment from Hope Leasing on January 1, 2020. Hope recently purchased the equipment at a cost of $222,664. Other information: Lease term Annual payments Life of asset Fair value of asset 3 years $80,000 on January 1 each year 3 уears $222,664 8% 8% Implicit interest rate Incremental rate There is no expected residual value. Required: 1) Show how Hope determined the $80,000 annual lease payments. Fair Value: 3 aaa, o loH - Present Valuee 2) Prepare appropriate journal entries for Hope for 2020 and 2021. Round your answers to the nearest whole dollar amounts. Prepare an amortization schedule for Hope. Outstanding Balance (lease receivable) 222. tolo4 Effective Interest Revenue Decrease in Balance Date Cash Payments 1/1/2020 1/1/2020 12/31/2020 12/31/2021 80.000 80.000 $0.000 gross lease investment
Help please
essment iorms/d/e/1F lease choose the correct 1. What's the future value of $1,500 after 5 years if the appropriate interes rate is 6%, compounded annually? O a) $2,620 O b) $5,016 O c) S2,007 O d) S1,500 O e) None of theia 2. What's the present va recelved after 3years if the appropriate interest rate apounded annually O a) s3.020
At the beginning of current year, Arianne Company sold a Próblem 15-12 (IFRS) machine and immediately leased it back. 5,000,000 6,000,000 500,000 Sale price at fair value Carrying amount of machine Annual rental payable at the end of each year Lease term Remaining life of machine Implicit interest rate PV of an ordinary annuity of 1 at 6% for 5 perioda 5 years 20 years 6% 4.21 1. What is the cost of right of use asset? a. 2,105,000 b. 2,526,000 c. 2,895,000 d. 1,500,000 2. What is the loss on right transferred to the buyer-lessor? a. 579,000 b. 505,200 c. 500,000 d. 3. What is the lease liability at year-end? a. 2,177,560 b. 1,605,000 с. 1,731,300 d. 2,105,000 4. What is the net annual rental income of the buyer-lessor? a. 373,700 b. 200,000 с. 500,000 d. 250,000 17 I 10 Page +
Fast pls i will give u like for sure solve this question correctly in 5 min
eBook Show Me How Question Content Area Differential Analysis for a Lease or Sell Decision Burlington Construction Company is considering selling excess machinery with a book value of $283,100 (original cost of $401,700 less accumulated depreciation of $118,600) for $276,000, less a 5% brokerage commission. Alternatively, the machinery can be leased for a total of $283,900 for five years, after which it is expected to have no residual value. During the period of the lease, Burlington Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $25,800. Question Content Area a. Prepare a differential analysis dated January 15 to determine whether Burlington Construction Company should lease (Alternative 1) or sell (Alternative 2) the machinery. If required, use a minus sign to indicate a loss. Differential AnalysisLease (Alt. 1) or Sell (Alt. 2) MachineryJanuary 15 LeaseMachinery(Alternative 1) SellMachinery(Alternative 2)…