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NEW table of Amortization Date 1/1/2023 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027 12/31/2028 12/31/2029 Payment Interest (12%) Principal 600,000 600,000 800,000 800,000 800,000 800,000 800,000 397,506 373,206 345,991 291,510 230,491 162,150 86,598 202,494 226,794 454,009 508,490 569,509 637,850 713,402 Present Value 3,312,548 3,110,054 2,883,260 2,429,251 1,920,761 1,351,252 713,402

NEW table of Amortization Date 1/1/2023 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027 12/31/2028 12/31/2029 Payment Interest (12%) Principal 600,000 600,000 800,000 800,000 800,000 800,000 800,000 397,506 373,206 345,991 291,510 230,491 162,150 86,598 202,494 226,794 454,009 508,490 569,509 637,850 713,402 Present Value 3,312,548 3,110,054 2,883,260 2,429,251 1,920,761 1,351,252 713,402

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The table shows the new table of amortization from 2023 to 2029. 

 

Please help me understand where the 3,312,548 came from? what is the calculation?

thank you

NEW table of Amortization Date 1/1/2023 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027 12/31/2028 12/31/2029 Payment Interest (12%) Principal Present Value 600,000 600,000 800,000 800,000 800,000 800,000 800,000 397,506 373,206 345,991 291,510 230,491 202,494 226,794 454,009 508,490 569,509 637,850 713,402 3,312,548 3,110,054 2,883,260 2,429,251 1,920,761 1,351,252 162,150 86,598 713,402
Transcribed Image Text:NEW table of Amortization Date 1/1/2023 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027 12/31/2028 12/31/2029 Payment Interest (12%) Principal Present Value 600,000 600,000 800,000 800,000 800,000 800,000 800,000 397,506 373,206 345,991 291,510 230,491 202,494 226,794 454,009 508,490 569,509 637,850 713,402 3,312,548 3,110,054 2,883,260 2,429,251 1,920,761 1,351,252 162,150 86,598 713,402
Annual rental payable at the end of each year January 1, 2020 with the following information: Cavalier Company entered into a lease of building on January 1, 2020 with the following information: Annual rental payable at the end of each year Lease term Useful life of building Implicit interest rate PV on an ordinary annuity of 1 at 9% for 5 periods 600,000 5 years 20 years 9% 3.890 The lease contained an option for the lessee to extend the lease for a further 5 years. At the commencement date, the exercise of the extension option is not reasonably certain. After 3 years on January 1, 2023, the lessee decided to extend the lease for a further 5 years. 800,000 12% New annual rental payable at the end of each year New implicit interest rate PV of an ordinary annuity of 1 at 12% for 5 periods PV of 1 at 12% for 2 periods PV of an ordinary of 1 at 12% for 2 periods 3.605 0.797 1.690
Transcribed Image Text:Annual rental payable at the end of each year January 1, 2020 with the following information: Cavalier Company entered into a lease of building on January 1, 2020 with the following information: Annual rental payable at the end of each year Lease term Useful life of building Implicit interest rate PV on an ordinary annuity of 1 at 9% for 5 periods 600,000 5 years 20 years 9% 3.890 The lease contained an option for the lessee to extend the lease for a further 5 years. At the commencement date, the exercise of the extension option is not reasonably certain. After 3 years on January 1, 2023, the lessee decided to extend the lease for a further 5 years. 800,000 12% New annual rental payable at the end of each year New implicit interest rate PV of an ordinary annuity of 1 at 12% for 5 periods PV of 1 at 12% for 2 periods PV of an ordinary of 1 at 12% for 2 periods 3.605 0.797 1.690
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