company consider cost about $500,000 to restore in 2018. The interest is 3%, the PV of lease day was around $560,000. Tax rate 30% Number of share 1,000,000 per for $1, and sold 800,000 Make any Adjusting entry change below.
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- Purchase Price: $15 million Depreciation: 5 year, straight line of the full purchase amount Expected Salvage Value: $4 million Yearly lease payment (made at the beginning of the year): $2.8 million Tax rate: 30% Cost of Equity: 9% Cost of Debt: 4.29% Debt/Equity Ratio: 2:1 What is the after-tax cost of debt? 3% 0% 3% 0% What is the WACC? 0% 0% 0% 0% What is the after-tax salvage value? $1.0M $4.0M $1.2M $2.8M At what rate should the after-tax salvage value be discounted? 0% 3% 0% 5% At what rate should the depreciation tax shield cash flow be discounted? 0% 3% 0% 5% What is the PV cost of ownership? $9.6M $9.8M $8.9M $8.7M What is the PV cost of leasing? $9.2M $9.0M $8.5M $8.9MQuarterly payments: 1st quarter Php 250,000.00 Php 50,000.00 Php 300,000.00 2nd quarter Php 250,000.00 Php 50,000.00 Php 300,000.00 3rd quarter Php 250,000.00 Php 50,000.00 Php 300,000.00 4th quarter Php 250,000.00 Php 50,000.00 Php 300,000.00 Question: How much is the VAT imposable for Client 1? Note: Write only the amount without comma, no peso sign and round off to the nearest peso (e.g. write 100000 only if the answer is One Hundred Thousand Pesos). If your answer is Zero, write 0 only. DO NOT INDICATE ANY NEGATIVE SIGN. 360000What is the Net Effective Rent using the following data? Five year gross step up lease with expense stops Gross rents Yr. 1 = $23.00, increasing 3% each year beginning Yr. 2 Operating Expense Yr. 1 $12.00, increasing 2% each year beginning Yr. 2 %3! Expense Stop at $12.00 Round to two decimals for the rents. O $12.77 O $11.84 O $12.29 O $12.56
- Accounting On January 1, 2021, X Company bought a machine for $44,000. It's now January 1, 2022, and management is disappointed that 2021 operating costs with the machine were $34,000. Since they are expecting future operating costs to continue to be $34,000 a year, they are considering replacing the machine with a new one. Although the new machine will cost $48,000, operating costs with the new machine will decrease by $9,000 each year. Both machines will last for 6 more years. The current machine can be sold immediately for $9,000 but will have no salvage value at the end of 6 years. The new machine will have a salvage value of $5,000 at the end of 6 years. Assuming a discount rate of 5%, what is the net present value of replacing the current machine with the new one?Problem 1: Harry Potter Castle (HPC) leased equipment from Helen's Leasing Co. on July 1, 2024, in a sales-type lease. The present value of the lease payments discounted at 10% was $80,000. Ten annual lease payments of $12,000 are due each July 1, beginning July 1, 2024. The total decrease in earnings (pretax) in HPC's Dec. 31, 2024, income statement would be: Your answer:dont give answer in image format
- High Time Tours leased rock-climbing equipment from Adventures Leasing on January 1, 2024. High Time has the option to renew the lease at the end of two years for an additional three years for $8,000 per quarter. Adventures purchased the equipment at a cost of $198,375. Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Related Information: Lease term Lease renewal option for an additional Quarterly lease payments Economic life of asset Interest rate charged by the lesson 2. Prepare an amortization schedule for the term of the lease. Note: Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values. Date January 1, 2024 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31 2025 Lease Payments 2 years (8 quarterly periods) 3 years at $8,000 per quarter $ 15,000 at January 1, 2024, and at March 31, June…On January 1, 2020, Beatrice Company sold an equipment with a remaining life of 20 years and immediately lease it back for a period of 5 years. Below are the relevant data:· Sale price at above fair value: P20,000,000· Fair value of building: 18,000,000· Carrying amount of building: 10,800,000· Annual rental payable at the end of each year: 1,500,000· Implicit rate: 12%PV factor for an ordinary annuity at 12% for five periods is 3.60. How much shall the buyer-lessor recognize as gross rental income and depreciation of the building, respectively? a. 555,556 ; 900,000 b. 944,444 ; 900,000 c. 555,556 ; 1,000,000 d. 944,444 ; 3,600,000profile-image Time remaining: 00 : 09 : 41 Accounting We have the following data for a power plant: 1 MW CENTRAL ECONOMIC BALANCE Power: 1 Mwa Maintenance cost: 3% per year Initial cost of operation: 5% per year Regulated Rate: $0.015/kWh (20 years) Project cost = $750,000.00 Plant factor= 60% Energy: 5256000 KWh Income from regulated tariff: 78840 Annual revenue increase: 6% Initial maintenance cost/year of annual maintenance (2% installation): $ 22,500.00 Annual maintenance increase: 5% Initial cost of operation/year (1% Installation) $ 37,500.00 Annual operation increase: 3% It is assumed that in year 10, an equipment update will be carried out whose cost will be 25% of the value of the investment = $187,500.00 SOLVE: In what year will the investment be recovered?
- Integrity Company sold to AAA Company machinery costing P800,000 with accumulated depreciation of P200,000 for P500,000 which is also its fair value on January 1, 2021. Integrity immediately leaseback the machine for 5 years for an annual rental of P50,000 payable at the end of each lease year with the first payment on December 31, 2021. The implicit interest rate is 6%. %. (Round off the PV factor to two decimal places, then do not round off during the computation)What is the amount capitalized as rights-of- use machinery at the date of sale-leaseback? a. P500,000 b. P300,000 c. P252,600 d. P210,500HhhhSouthwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Tech manufactured the equipment at a cost of $94,500. Other information: 3 years $49,000 on January 1 each year 3 years $136, 382 Lease term Annual payments Life of asset Fair value of asset Implicit interest rate 8% Incremental rate 8% There is no expected residual value. Required: Prepare appropriate journal entries for Hi-Tech Leasing for 2018. Assume a December 31 year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amounts.) View transaction list Journal entry worksheet 2 3 > Record the lease. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2018