Caleb's Corp disclosed the following minimum rental commitments under non-cancelable operating leases in its 2020 annual report (in millions).OperatingLeases2021$48,848202250,490202350,130202449,364202548,174585,336$832,342ThereafterTotalWhat is the approximate present value of the minimum lease payments? Assume a discount rate of 6.0%.Note: Round the remaining lease term to the nearest whole year, using the final lease payment provided as an estimate of annual future payments.Select one:a. $612,091 millionОb. $747,426 millionОc. $510,013 millionОd. $620,847 millionОe. $832,342 million

Calculations are done in excel with a margin of error of 0.01% Hence, the closest answer is option…

Answered: Caleb's Corp disclosed the following…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A lease agreement that qualifies as a finance lease calls for annual lease payments of $26,269 over a six-year lease term (also the asset’s useful life), with the first payment on January 1, the beginning of the lease. The interest rate is 5%. Required: Complete the amortization schedule for the first two payments. If the lessee’s fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year? What would be the interest payable?
Caleb's Corp disclosed the following minimum rental commitments under non-cancelable operating leases in its 2020 annual report (in millions). Operating Leases 2021 $48,848 2022 50,490 2023 50,130 2024 49,364 2025 48,174 Thereafter Total 585,336 $832,342 What is the approximate present value of the minimum lease payments? Assume a discount rate of 6.0%.
On January 1, 2020, Mountain Inc. leases a machine used in its operations. The annual lease payment is $10,000 due on December 31 of 2020, 2021, and 2022. The fair value of the machine on January 1, 2020 is $26,730. The machine has no residual value. Mountain could borrow on a three-year collateralized loan at 6%. If the lease is accounted for as a finance lease, the total expenses related to this lease contract that Mountain Inc. will report in its income statement for the year ending December 31, 2020 is Select one: a. $10,600 b. $10,514 c. $10,717 d. $10,000
What is the proper accounting treatment to record a variable lease payment indexed off the CPI? Group of answer choices Record the lease liability based on highest annual increase in the CPI for the past 10 years. Calculate the lease liability based on the base payment and debit an additional expense in subsequent years based on the change in the CPI. Calculate the lease liability based on expected payments over the life of the lease after considering increases in the CPI. Capitalize and depreciate the increased payments based on CPI indexing.
What is the interest expense for the calendar year 2022? (round off answer to the nearest WHOLE NUMBER) On March 31, 2021, SIX Company as lessee signed a ten-year non-cancelable lease for an equipment stipulating annual payments of P375,250. The first payment was made on March 31, 2021 and P375,250 annually on each March 31 for the next nine years. The present value on March 31, 2021 of the ten lease payments over the lease term using the rate implicit in the lease which SIX knows to be 12% was P3,175,500. The March 31, 2021 present value of the lease payments using SIX's incremental borrowing rate of 14% was P2,850,125. Ownership of the property remains with the lessor at expiration of the lease. There is no purchase option. The leased property has an estimated economic life of 12 years.
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In Note 11, of its 2018 financial statements, Chipotle (CMG) reported the following future operat- ing lease information: E5.12 Contractually required future minimum cash lease payments under existing operating leases as of December 31, 2018, are as follows: $ 294,191 296,579 294,941 295,290 2019 2020 . 2021 2022 290,980 2,478,397 2023 Thereafter. Total minimum lease payments $3,950,378 a. Assuming a discount rate of 5 percent, estimate the unrecognized asset and liability for assets acquired under operating leases for CMG at December 31, 2018. b. Given the estimated unrecognized liability calculated in part a., what impact does including this amount have on the liabilities of CMG reported on the balance sheet?
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Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $1,500 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. Lease Cash Effective Decrease in Outstanding Payment Payment Interest Balance Balance 40,860 31,960 24,978 17,577 9,731 ?? 0 1 2 3 4 5 6 8,900 8,900 8,900 8,900 8,900 1,500 Multiple Choice $46,000 ?? 1,918 1,499 1,055 What is the total interest paid over the term of the lease? $2.760 ?? 85 ?? 6,982 7,401 7,845 ?? 1,415
ABC Enterprises entered into a five-year lease agreement on 1 November 2020, paying£10,975 per annum, commencing on 31 October 2021. The present value of the lease payments was £45,000 and the interest rate implicit to the lease was 7% What is the amount to be shown within non-current liabilities at 31 October 2021? Show your calculations.
Given the following situations. Illustrate and distinguish whether it is a simple annuity or a general annuity. 1. Monthly payments of P3,000 for 4 years with an interest rate of 3% Flag compounded monthly 2. Semi-annual payments of P150,000 with an interest rate of 8% compounded rest annually for 10 years. 3. Annual payments of P20.500 with an interest rate of 8.5% compounded semi-annually for 3 years 4. Quarterly payment of P5,000 for 10 years with an interest rate of 2% and compounded quarterly. 5. Quarterly payment of P15.000 for 10 years with an interest rate of 8% compounded annually.

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