CAT Co. is a dealer of machinery. It leased to DOG Co. a machine with a cost of $200,000 for 5 years with $80,000 annual rent payable at the end of each year. The machine has an estimated useful life of 5 years. The present value factor of an annuity of 1 for five years at 12% is 3.60. What amount of gross profit on sale should be recorded by CAT Co.?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
CAT Co. is a dealer of machinery. It leased to DOG Co. a machine with a cost of $200,000 for 5 years with $80,000 annual rent payable at the end of each year. The machine has an estimated useful life of 5 years. The present value factor of an annuity of 1 for five years at 12% is 3.60. What amount of gross profit on sale should be recorded by CAT Co.?
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