Airlines follow ASPE. The equipment's normal selling price is $211,345 and its unguaranteed residual value at the end of the lease term is estimated to be $15,100. Novak Airlines will make annual payments of $25,100 at the beginning of each year and pay for all maintenance and insurance. Oriole incurred costs of $104,800 in manufacturing the equipment and $7,020 in negotiating and closing the lease. Oriole has determined that the collectibility of the lease payments is reasonably predictable, that no additional costs will be incurred, and that the implicit interest rate is 8%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Calculate the PV of the lease payments and unguaranteed residual value under the lease. (Round factor values to 5 decimal places, eg. 1.25124 and final answers to O decimal places, e.g. 5,275.) PV of the lease payments and unguaranteed residual value eTextbook and Media List of Accounts Describe the nature of the lease. The lease is to Oriole Corporation. Calculate the amount of each of the following items: (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) 1. Gross investment 2. Unearned interest income $ 3. Sale price 4. Cost of goods sold eTextbook and Media List of Accounts Prepare a 10-year lease amortization schedule for the lease obligation using Excel. (Round answers to O decimal places, eg. 5,275.) Oriole CORPORATION (Lessor) Lease Amortization Schedule Annuity Due Basis, Unguaranteed Residual Value Annual Lease Beginning Payment Plus of Year Residual Value Interest (8%) on Net Investment Assistance Used SUPPORT Net Investment Recovery Net Investment
Airlines follow ASPE. The equipment's normal selling price is $211,345 and its unguaranteed residual value at the end of the lease term is estimated to be $15,100. Novak Airlines will make annual payments of $25,100 at the beginning of each year and pay for all maintenance and insurance. Oriole incurred costs of $104,800 in manufacturing the equipment and $7,020 in negotiating and closing the lease. Oriole has determined that the collectibility of the lease payments is reasonably predictable, that no additional costs will be incurred, and that the implicit interest rate is 8%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Calculate the PV of the lease payments and unguaranteed residual value under the lease. (Round factor values to 5 decimal places, eg. 1.25124 and final answers to O decimal places, e.g. 5,275.) PV of the lease payments and unguaranteed residual value eTextbook and Media List of Accounts Describe the nature of the lease. The lease is to Oriole Corporation. Calculate the amount of each of the following items: (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.) 1. Gross investment 2. Unearned interest income $ 3. Sale price 4. Cost of goods sold eTextbook and Media List of Accounts Prepare a 10-year lease amortization schedule for the lease obligation using Excel. (Round answers to O decimal places, eg. 5,275.) Oriole CORPORATION (Lessor) Lease Amortization Schedule Annuity Due Basis, Unguaranteed Residual Value Annual Lease Beginning Payment Plus of Year Residual Value Interest (8%) on Net Investment Assistance Used SUPPORT Net Investment Recovery Net Investment
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer all parts of the question below (including the Lease Amortization Schedule). Please include all calculations and explanations.
Transcribed Image Text:Airlines follow ASPE. The
equipment's normal selling price is $211,345 and its unguaranteed residual value at the end of the lease term is estimated to be $15,100. Novak Airlines will make annual payments of $25,100 at the beginning of each
year and pay for all maintenance and insurance. Oriole incurred costs of $104,800 in manufacturing the equipment and $7,020 in negotiating and closing the lease. Oriole has determined that the collectibility of the lease
payments is reasonably predictable, that no additional costs will be incurred, and that the implicit interest rate is 8%.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.
Calculate the PV of the lease payments and unguaranteed residual value under the lease. (Round factor values to 5 decimal places, eg. 1.25124 and final answers to O decimal places, e.g. 5,275.)
PV of the lease payments and unguaranteed residual value
eTextbook and Media
List of Accounts
Describe the nature of the lease.
The lease is
to Oriole Corporation.
Calculate the amount of each of the following items: (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 5,275.)
1.
Gross investment
2.
Unearned interest income
$
3.
Sale price
4.
Cost of goods sold
eTextbook and Media
List of Accounts
Prepare a 10-year lease amortization schedule for the lease obligation using Excel. (Round answers to O decimal places, eg. 5,275.)
Oriole CORPORATION (Lessor)
Lease Amortization Schedule
Annuity Due Basis, Unguaranteed Residual Value
Annual Lease
Beginning
Payment Plus
of Year
Residual Value
Interest (8%)
on Net
Investment
Assistance Used
SUPPORT
Net
Investment
Recovery
Net
Investment
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