ecifying that ownership of the ferry will transfer to the lessee at the end of the nual lease payments do not include executory costs. Other terms of the agre lows: P9,000,000 P2,000,000 iginal cost of the ferry ase payment payable in advance timated residual value P1,000,000 plicit interest rate te of first lease payment ase term 12% January 1, 2020 10 years hat is the profit on sale for 2020?

ecifying that ownership of the ferry will transfer to the lessee at the end of the nual lease payments do not include executory costs. Other terms of the agre lows: P9,000,000 P2,000,000 iginal cost of the ferry ase payment payable in advance timated residual value P1,000,000 plicit interest rate te of first lease payment ase term 12% January 1, 2020 10 years hat is the profit on sale for 2020?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Vaibh
Da
Please don't provide answer in image format thank you
Answer is $1,818 Please explain the reasoning and calculations
Myro Company leased a new machine from Myie Corp. on May 1, 2014 under a lease with the following information: Annual rental payable at beginning of each lease year P 400,000; Lease term 10 years Useful life of machine 12 years Implicit interest rate 14% Present Value of an annuity of 1 advance for 10 periods at 10 periods at 14%. 0.27 Myro has the option to purchase the machine on May 1, 2024, by paying P 500,000, which approximate the expected fair value of the machine on the option exercise date. On May 1, 2014, how much should Myro record the leased asset?
3. At the beginning of 2020, VIXEN Company leased an equipment with the following information: Annual rental payable at the end of each year P450,000; residual value guarantee P50,000; Lease incentive received P20,000; Lease term 4 years; Useful life of the equipment 8 years; implicit interest rate 10%; present value of an ordinary annuity of 1 at 10% for 4 periods 3.17; present value of 1 at 10% for 4 periods 0.68. What is the cost of right of use asset? *
am. 101.
Uramilaben
needed: lease liabilityright of use of assetdepreciation expenseplease use a table for explaining lease liab.
On December 31, 2020, Brick Co. leases Equipment to House, Inc. Annual Lease Payments made at beginning of Lease year $159,000 Implicit rate Guaranteed Residual Value Expected Residual Value Present value of an annuity due (7%,5) Present value of an ordinary annuity (7%,5) Present value of a single sum (7%,5) 7% $155,500 $56,500 4.38721 4.10020 0.71299 What journal entry would House, Inc. make at December 31, 2020 to record the lease assuming this is a finance lease? O DR Right of Use Asset $768,152; CR Lease Liability $768,152 O DR Right of Use Asset $808,426; CR Lease Liability $808,436 O DR Right of Use Asset $737,850; CR Lease Liability $737,850 O DR Right of Use Asset $626,980; CR Lease Liability $626,980
On January 1, 2020, A Company sold a building to B Company with a carrying amount of P4,200,000 for P5,500,000 and immediately leased it back. The building had a fair value of P4,700,000 at the date of sale, and had a remaining useful life of 10 years. Additional information on the lease is as follows: Lease term 5 years P500,000 Annuity made in advance 10% Implicit rate USE PV FACTORS ROUNDED TO 4 DECIMALS. ROUND FINAL ANSWERS TO NEAREST PESO. Determine total rent income recognized by B Company in 2020.
In Intermediate Accounting by Whalen on Cengage, chapter 20, homework question 4, how do you calculate the selling price? Sale type lease for 8 years. Lease pmt due at the end of the year $32,000/yr. 14% interest. Cost of the equipment is $110,000 and estimate fair value at the end of the lease is $20,000.