financial accounting 5 point assignment Assignment Financial Accounting [5 points]Green Path Landscaping purchased equipment through a 5-yearcapital lease. Annual payments are $12,000, and the implicitinterest rate is 6%. Calculate the present value of the lease (usingPVA factor of 4.2124 for 5 years at 6%). Round your answer.

Explanation of Present Value of a Lease:The present value of a lease represents the current worth of…

Answered: Assignment Financial Accounting [5…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Emily leased equipment worth $70,000 for 5 years. If the cost of borrowing is 5.69% compounded semi-annually, calculate the size of the lease payment that is required to be made at the beginning of each half-year. $0.00 Round to the nearest cent SUBMIT QUESTION ← Q SAVE PROGRESS V SUBMIT AS ENG US
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Construct an amortization schedule for a $1,000, 3.9% annual rate loan with 3 equal payments. The first payment will be made at the end of the 1st year. Find the required annual payments Selected Answer: $356.9 Answers: $356.9 $359.7 $367.2 $370.5 what’s the ending balance of the amortized loan at the end of the first year? Selected Answer: $678.1 Answers: $650.2 $669.1 $678.1 $679.3
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Quantitative Problem 1: Findley Furniture Company must install $5.9 million of new equipment in one of its plants. It can obtain a bank loan for 100% of the required amount. Alternatively, management believes it can arrange a lease. Assume that the following facts apply: 1. The equipment falls in the MACRS 5-year class. The applicable MACRS rates are 20%, 32%, 19%, 12%, 11%, and 6%. 2. The lease includes maintenance, whereas if the equipment is purchased, it would require maintenance provided by a service contract for $120,000 per year, payable at the end of the year. 3. Findley's federal-plus-state tax rate is 35%. 4. If the money is borrowed, the bank loan will be at a rate of 10%, amortized in 5 equal installments to be paid at the end of each year. 5. The tentative lease terms call for end-of-year payments of $1.25 million per year for 5 years. 6. At the end of the lease term, the equipment will have an estimated salvage value of $950,000. At that time, Findley plans to replace the…
Step 3: Practice: Amortization Schedule Now it's time for you to practice what you've learned. Suppose Neha receives a $37,000.00 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 8% compounded annually. Complete the following amortization schedule by calculating the payment, interest, repayment of principal, and ending balance for each year. \table[[Year, Beginning Amount, Payment, Interest, Repayment of Principal, Ending Balance], [1, $37,000.00, grad,grad,grad,grad Step 3: Practice: Amortization Schedule Now it's time for you to practice what you've learned. Suppose Neha receives a $37,000.00 loan to be repaid equal installments at the end of each of the next 3 years. The interest rate is 8% compounded annually. Complete the following amortization schedule by calculating the payment, interest, repayment of principal, and ending balance for each year. Beginning Amount Year Payment Interest Repayment Principal Ending Balance…
Applying Time Value of Money Concepts Fulton Corporation purchases new manufacturing facilities and assumes a 10 year mortgage of $4 million. The annual interest rate on the mortgage is 5.5% and payments are due at the end of each yea a. Determine the mortgage payment that Fulton Corporation must make each year. Round to the nearest dollar. $ 0 b. Use Excel to prepare a mortgage amortization schedule for the 10 years. To access an Excel template, click the following link: mortgage amortization schedule C. At the end of the first year, what amount will Fulton include as "current maturities of long-term debt" on its balance sheet? Round to the nearest dollar. $ 0
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Finance Q.4- The Nail Inc. wishes to acquire a $100,000 wood cutting machine, which it plans to use for seven years. At the end of this time, the machine's residual value will be $24,000. The asset falls into the five-year property class for cost recovery (depreciation) purposes. The company can use either a "true" lease or debt financing. Lease payments of $16,000 at the beginning of each of the seven years would be required. If debt-financed, the interest rate would be 14 percent, and debt payments would be due at the beginning of each of the eight years. (Interest would be amortized as a mortgage- type of debt instrument.) The company is in a 40 percent tax bracket. Which method of financing has the lower present value of cash outflows?
View Policies Current Attempt in Progress Callaway Golf Co. leases telecommunications equipment from Blossom Company. Assume the following data for equipment leased from Blossom Company. The lease term is 5 years and requires equal rental payments of $24,800 at the beginning of each year. The equipment has a fair value at the commencement of the lease of $120,000, an estimated useful life of 8 years, and a guaranteed residual value at the end of the lease of $12,400. Blossom set the annual rental to earn a rate of return of 5%, and this fact is known to Callaway. The lease does not transfer title or contain a bargain purchase option, and is not a specialized asset. How should Callaway classify this lease? eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
Please answer all parts quick. make sure the answer is 100% correct and is presented in good formatting. 1- On 1/31/Y5, Zeus Company leased a new machine from Thor Corp. The following data relate to the lease transaction at its inception: Lease term 5 years Annual rental payable at beginning of each lease year $30,000 Useful life of machine 10 years Implicit interest rate 8% Present value of an annuity of 1 in advance for 5 periods at 8% 4.3121 Present value of annuity of 1 in arrears for 5 periods at 8% 3.9927 Fair value of the machine $200,000 The lease has no renewal option, the possession of the machine reverts to Thor when the lease terminates, and the machine does have alternative uses. The first lease payment of $30,000 is paid at the inception of the lease. What is the amount of lease liability recorded by Zeus at the inception of the lease? Group of answer choices $200,000 $129,363 $119,789 $0, because it does not meet the lease criteria for a finance…
credit union entered a lease contract valued at $5000. The contract provides for payments at the end of each quarter for 5 years. If interest is 5.1% compounded quarterly, what is the size of the quarterly payment? Question content area bottom Part 1 The payment is $enter your response here. (Round the final answer to the nearest cent as needed

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Assignment Financial Accounting [5 points] Green Path Landscaping purchased equipment through a 5-year capital lease. Annual payments are $12,000, and the implicit interest rate is 6%. Calculate the present value of the lease (using PVA factor of 4.2124 for 5 years at 6%). Round your answer.