Organic Markets reports operating lease information in its 2016 annual report (in millions). You determine that a discount rate of 6.0% is appropriate for Organic Markets and calculate the following. What economic liability ispotentially left off Organic Markets' balance sheet?Note: Round the remaining lease term to the nearest whole year, using the final lease payment provided as an estimate of annual future payments.Year20172018201920202021ThereafterMinimum operatinglease payments$6507838368528549,728$13,703Select one:O a. $8,358 millionOb. $13,703 million.Oc. $10,183 millionOd. $10,060 million.

Economic liability represents the current value of all the future expected liabilities.

Answered: Organic Markets reports operating lease…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

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How do I calculate this on a TI-84 calculator? Air Atlantic (AA) has been offered a 3-year old jet airliner under a 12-year lease arrangement. The lease requires AA to make annual lease payments of $500,000 at the beginning of each of the next 12 years. Determine the present value of the lease payments if the opportunity cost of funds is 14
In Note 11, of its 2018 financial statements, Chipotle (CMG) reported the following future operat- ing lease information: E5.12 Contractually required future minimum cash lease payments under existing operating leases as of December 31, 2018, are as follows: $ 294,191 296,579 294,941 295,290 2019 2020 . 2021 2022 290,980 2,478,397 2023 Thereafter. Total minimum lease payments $3,950,378 a. Assuming a discount rate of 5 percent, estimate the unrecognized asset and liability for assets acquired under operating leases for CMG at December 31, 2018. b. Given the estimated unrecognized liability calculated in part a., what impact does including this amount have on the liabilities of CMG reported on the balance sheet?
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Recording Finance Lease Journal Entries- Guaranteed Residual Value Smith, the lessee, signs an 8-year lease agreement of a floor of a building on December 31, 2020, that requires annual payments of $70,000, beginning immediately. The residual value is guaranteed to the lessor of $50,000 at the end of the lease term. Smith estimates that the residual will have a value of $30,000 at the end of the lease term. Smith is aware of the lessor's implicit rate of interest of 7%. Record Smith's journal entries on December 31, 2020, assuming that the lease is properly classified as a finance lease. • Note: Round your answers to the nearest whole dollar. Date Account Name Dec. 31, 2020 Dec. 31, 2020 To record asset and liability To record cash lease payment Dr. Cr. Answer Answer Answer Answer Answer Answer Answer Answer
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