Save & ExitCheck mManufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machinesmanufactured the equipment at a cost of $85,000, Manufacturers Southern's fiscal year ends December 31. (FV of $1, PV of $1, FVA of$1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provlded.)Related InformationtLease term2 years (8 quarterly periods)$15,000 at the beginning of each periodQuarterly rental paymentsEconomic life of assetFair value of assetImplicit interest rate2 years$112,08088Required:1. Show how International Machines determined the $15,000 quarterly lease payments.2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second leasepayment on April 1, 2021.Complete this question by entering your answers in the tabs below.Required 1Required 2Show how International Machines determined the $15,000 quarterly lease payments. (Round your Intermediate and finalanswers to the nearest whole dollar.)PV factors based onTable or Calculator function:PV of LeaseTeoco Dovmant26 of 33Next >PrevIMG-0582.jpgIL I

Solution 1: PV Factor based on Table or Calculator function PVAD of $1 PV of lease $1,12,080…

Answered: Manufacturers Southern leased high-tech…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $92,000. Manufacturers Southern's fiscal year ends December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $18,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $134,496 Implicit interest rate 8% Required:1. Show how International Machines determined the $18,000 quarterly lease payments.2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021.
Dissolution is the term which solely means to liquidate the partnership. Group of answer choices True False
Manufacturers Southern leasedhigh tech electronics equipment from international machines on January 1, 2024. international machines manufactured the equipment at a cost of $89,000. Manufacturers Southern's fiscal year ends December 31. Manufacturers Southern's fiscal year ends December 31. Lease term 2 years (8 quarterly periods) Quarterly rental payments $16,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $117,590 Implicit interest rate 10% Required: 1. Show how International Machines determined the $16,000 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2024, and the second lease payment on April 1, 2024
Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $105,000. Manufacturers Southern's fiscal year ends December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $17,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $127,024 Implicit interest rate 8% Required:1. Show how International Machines determined the $17,000 quarterly lease payments.2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021.
LMO Company incurred expenditures for leasehold improvements during the year. The relevant lease is on an office building that the Company rented at the beginning of 2021. The improvements cost $90098. The lease's initial term is 6 years, with an option to renew for another 2 years. The company had a profit before CCA on these leasehold improvements of $707467. What would be the maximum amount of CCA the company could deduct in 2021?
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Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2018. Third Bank purchased the equipment at a cost of $1,400,000. Chance elected the short-term lease option. Appropriate adjusting entries are made annually. Related Information: 1 year (4 quarterly periods) $56,000 at Jan. 1, 2018, and at Mar. 31, June 30, and Sept. 30. 5 years Lease term Quarterly lease paymenta Economic life of asset Interest rate charged by the lessor Required: Prepare appropriate entries for Chance from the beginning of the lease through December 31, 2018. (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 amount.)
Domestic
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2021. Edison purchased the equipment from International Machines at a cost of $126,890. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $16,700 at the beginning of each period Economic life of asset 2 years Fair value of asset $126,890 Implicit interest rate 6% (Also lessee’s incremental borrowing rate) Required:Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 1, 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis.
Southwestern 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
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