Answer is $34,600Please explain the reasoning and calculations Questions 7-9 are based on the following lease amortization schedule. The five payments aremade annually starting with the inception of the lease. A $2,000 bargain purchase option isexercisable at the end of the five-year lease. The asset has an expected economic life of eightyears.Effective Decrease inBalanceLeaseCashPayment PaymentInterestBalance34,6008,000????26,6008,0002.6605.34021,26015,3868,9252,1265,8748,0008,0001,5396.461??????8,0002,0001821.8181231t56 7. What is the amount of Right of Use recognized at the inception of the lease?a. $0 because it is an operating leaseb. $8,000c. $26,600d. $34,600e. $42,600

Lease means giving out the assets by lessor to lessee to use that assets in return of rent.…

Answered: 7. What is the amount of Right of Use…

7. What is the amount of Right of Use recognized at the inception of the lease? a. $0 because it is an operating lease b. $8,000 c. $26,600 d. $34,600 e. $42,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Please help me answer this question, VAT - 15%

A: Owners Equity The calculation of owners equity is to the beginning balance of equity plus net income…

Q: Calculate the value of the tenant's interest based upon a return of j, = 8%. Round your answer to…

A: Interest rate = 8% Monthly rate = 8%/12 = 0.6666667 Period = 15 years or 180 months Value of tenants…

Q: Calculate the amount of the annual rental payment required. (Round present value factor calculations…

A: Under this question, both the lessor and lessee classify the above lease as a Finance lease. The…

Q: 7.Domex Corporation is a resident foreign corporation. It shows the following for the taxable year…

A: Royalties are charged at a separate rate and business income from abroad is also charged at…

Q: If your credit card balance is $650 and the interest rate is 12% APR, then the credit card interest…

A: Given that the annual percentage rate is 12%To calculate the charges, we need to convert the annual…

Q: Charles Wilson Company sells 8% bonds having a maturity value of $1,910,000 for $1,765,190.00. The…

A: The bonds are the debt instrument issued to raise money. These are issued by either corporation or…

Q: Find the future value of this loan: $20,862 at 11.4% for 14 months. Group of answer choices A.…

A: Given information : Present value = $20862 Interest rate = 11.4% Time period = 14 months

Q: Could you explain how you got $44,139.39. What are the specific calculations for NPV(15%B3:B12)?

A: Net Present Value: It represents the present worth of a project in terms of absolute profitability.…

Q: Nielsen Corporation has two manufacturing departments--Machining and Assembly. The company used the…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: For each of the following annuities, calculate the present value. Note: Do not round intermediate…

A: The PV of an ordinary annuity shows the present value of all future cash flows discounted at a given…

Q: A perpetuity pays $85 per year and costs $3,580. What is the rate of return? Select the correct…

A: Given:Annual Payment = $85Cost of the Perpetuity = $3,580

Q: ompany issues 7%, 7-year bonds with a par value of $170,000 on January 1 at a price of $179,602,…

A: The annual interest paid on the bond is the coupon rate of the bond into the par value of the bond.…

Q: ayment mount Interest Expense 340,000 $911,169 340,000 $916,151 340,000 $921,481 in Discount $71,169…

A: Cash interest payment is the interest paid to the bond holder at a fixed rate each year calculated…

Q: 14.Ivan Company provided the following information: January1 3,500,000 December 31 Fair value of…

A: Actual return on plan assets for the current year = Ending Fair value of plan assets + benefit paid…

Q: GROSSING-UP. Cotter Company wants to award a $4,000 bonus to Donna D'Amico. In addition, it wants…

A: Taxes withheld refers to the tax deducted before paying it to the person and paying that tax amount…

Q: Solve for the missing item in the following Principal= $500 Interest =6% Time? Simple…

A: Principal = $500 Interest rate = 6% Simple interest = $120

Q: Problem 11-4 Corporate Capital Gains and Losses (LO 11.2) DeMaria Corporation, a calendar year…

A: Loss of one year can be carried forward and adjusted against profit of subsequent years.

Q: 2. View the Transaction Journal for Receive Payment. a. From the Navigation Bar, select Sales > All…

A: A Journal entry is a presentation of a record of a financial transaction. It's the first step of…

Q: What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has…

A: The objective of the question is to find out the annual payment that one must receive to earn a 6.5%…

Q: General Computers Inc. purchased a computer server for $65,500. It paid 25.00% of the value as a…

A: Purchase price 65500 Loan 49,125 Interest rate 6.50% Time (in months)…

Q: ACC 3200 – Practice Final 1. Salisbury Corporation has been producing and selling 30,000 caps a…

A: Introduction:- The following basic information as follows under:- Gilbert Company has contacted…

Q: Board HW #1 PRIOR SERVE COST = 500 EM YRS = 20 DO ENTRY NOW DO THE AMORTIZATION ENTRY EVERY YR Board…

Q: A company's normal selling price for its product is $25 per unit. However, due to market…

A: Introduction: First in, first out (FIFO) is an accounting approach in which assets purchased or…

Q: Exploring Annuities with Microsoft Excel 1. Objectives: To organize data and perform calculations…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: For each of the following, compute the future value: (Do not round intermediate calculations and…

A: Future Value (FV) refers to the worth of an asset or cash at a specified date in the future based on…

Q: Bally Incorporated has identified the following cost drivers for its expected overhead costs for the…

A: A method of allocating overhead and indirect expenses to goods and services is called activity-based…

Q: The monthly average cable TV bill in 2017 is $65.13. If cable costs are climbing at an annual rate…

A: Present value:- The term present value represents that an amount of money today have more worth or…

Q: Use the following to answer the question below. Reserve Requirement Ratio 25.8% Initial Deposit $1…

A: Solution:- Total change in deposits is the change in initial amount after the effect of Reserve…

Q: tep one payments are showing as $20,00,000.00 instead of $2,000,000. Can you provide an updated…

Q: Find the present value of an account if the future value is $4,200 at 6 #% simple $ interest from…

A: Present value is the current value of a future amount with a specified rate and at a specified time.…

Q: NSWER IS LETTER B. 9,000. PLEASE PROV

A: Net income means deducting all the expenses (Costs) allowances and taxes of an individual are known…

Q: general journal take good worth rm230 to be use himself

A: Withdrawal of goods refers to the taking out the goods from the business by the owner of the…

Q: 6. New Flyer Industries has decided to expand its production of hybrid transit buses. The firm…

A: Net present value is the commonly used in selection of projects based on time value of money and is…

Q: G 3.4, 3.5) How much is accumulated over two years in each of the following vings plans? $40 at the…

A: Future value includes the compound interest and deposits made over the period of time.

Q: Use the compound interest tables to answer the following questions. (Click here to access the PV…

A: The compound interest is a system of providing interest on the invested amount and the interest…

Q: _69. Faithful Company purchased an equipment on January 2, 2017 for P3,000,000. The equipment had an…

A: Calculation of total accumulated depreciation as on December 31,2019::: CCarrying amount as on…

Q: The following information were taken from the financial statements of CAMBODIA, INC. on December 31,…

A: Financial liabilities: Its a contractual obligations by the company to pay cash or deliver the…

Q: PART II: Open-ended Problems Instructions: Determine a solution for each problem. Unless…

A: Statement of Cash Flow is a financial statement that includes the inflow and outflow of cash during…

Q: What is the revenue earned from award credits for 2022? *see attached a. P 0 b. P 28,000 c. P…

A: Given, Total Sales for 3 years = P 2,800,000 Actual Warranty Expenditure = P 136,000 Total expected…

Q: (LG 4.5) Margaret has a project with a $28 000 first cost that returns $5000 per year over its…

A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…

Q: 8. What is the effective annual interest rate? а. 9%. b. 10%. с. 11%. d. 20%.

A: Lease means where the lessor give right to use the assets to lessee for specified period and in…

Q: What is the monthly net take home pay? * A. P25,000 B. P24,486.67 C. P23,385 D.…

A: Compensation Income In Philippines compensation income which can be derived after deducting some…

Q: A company issues 6% bonds with a par value of $100,000 at par on January 1. The market rate on the…

A: Par value of bond = $100,000 Coupon rate = 6% Semi annual coupon rate = 6%/2 = 3%

Q: Splish Company is a multiproduct firm. Presented below is information concerning one of its…

A: FIFO is first in first out which means inventory bought first is sold first.LIFO is last in first…

Question

Answer is $34,600 Please explain the reasoning and calculations

7. What is the amount of Right of Use recognized at the inception of the lease?
a. $0 because it is an operating lease
b. $8,000
c. $26,600
d. $34,600
e. $42,600

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

ind the future value and compound interest on $4,000 at 4% compounded semiannually for two years. Use the Future Value or Compound Amount of $1.00 Table or ne future value and compound interest formula. Future Value or Compound Amount of $1.00. Future value = $ (Round to the nearest cent as needed.) Help Me Solve This Calculator Get More Help - Clear All Check Answer P Pearson ere to search %23 70 F home %23 24 4. 6 R Y G K D alt
On November 1, Jasper Company loaned another company $230,000 at a 12.0% interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company's annual accounting period ends on December 31. The amount of interest revenue that should be reported in the first year is: Multiple Choice $4,600. $6,675. $0. here to search 8:01 PM 100% 2/21/2022
THE CORRECT ANSWER IS A $ 6500 PLEASE EXPLAIN ME HOW TO SOLVE IT B,C AND D ARE WRONG
The direct-material quentity veriance is: $1600F. $1400U. $1,600U. O $3,45OF. O $1.400F.
Journalize this transaction: Paid $320 to Ameren for the monthly bill. Edit View Insert Format Tools Table 12pt v Paragraph v В I U MacBook Pro Oine Fi En ACCT 101 Onre le Oa01 for Ais eet # $ % & 3.
Multiple Choice a. $900. b. $1,400. c. $1,900. d. $2,400. e. $2,600.
ABFHRL437 Corporation's info is below: (Baruch College Exam) Sales $843,000 VC $168,600 FC $14,350 NOI $660,050 (ID#63561) Q) How much is ABFHRL437's Contribution Margin? A) $ < P.hex
Please answer the question Minimum 150 words What is the return of the creditors? How can it be measured?
Question: A debenture of $100 each is issued at $90 per debenture. How much is the discount? A. $0 B. full C . $10 D. $90
On July 1, 2021, Markwell Company acquired equipment. Markwell paid $167,500 in cash on July 1, 2021, and signed a $670,000 noninterest- bearing note for the remaining balance which is due on July 1, 2022. An interest rate of 5% reflects the time value of money for this type of loan agreement. (PV of $1, PVA of $1) (Use appropriate factor(s) from the tables provided.) For what amount will Markwell record the purchase of equipment? Multiple Choice $705,595 $797,977. $837.500. { Prev 15 of 15 Next
eBook Show Me How Calculator Example 4-12 GROSSING-UP. Cotter Company wants to award a $4,000 bonus to Donna D'Amico. In addition, it wants the net bonus payment to equal $4,000. Assuming D'Amico is still under the OASDI/FICA limit, the calculation would be: A. $4,000 1 – 0.22 (supplemental W/H rate) – 0.062 (OASDI) – 0.0145 (HI) B. $4,000 = $5,685.86 grossed-up bonus 0.7035 C. Gross bonus amount $5,685.85* Federal Income Tax withheld 1,250.89 OASDI tax withheld 352.52 HI tax withheld 82.44 Take-home bonus check $4,000.00 If state or local taxes apply, they must also be included in the formula. *Need to subtract $0.01 from $5,685.86 in order to arrive at $4,000.00 (due to rounding). Mattola Company is giving each of its employees a holiday bonus of $100 on December 13, 20-- (a nonpayday). The company wants each employee's check to be $100. The supplemental tax percent is used. Nobody has capped for OASDI prior to the bonus check. a. What…
Complete the following table: Purchase price of product Landcruiser Down payment Amount financed Number of monthly payments Amount of monthly payments Total of monthly payments Total finance charge $70,900 $49,500 $72 $488