QUESTION: 56 On January 1, 2016, Stephen Corp., a lessor, signed a direct financing lease. Stephen was to receive annual year-end payments of $10,000 for ten years, after which there was a guaranteed residual value of $8,000. The implicit interest rate was 8%. Actuarial information for 8%, ten periods follow: Present value of an ordinary annuity of $1 6.71008 Present value of the amount of $1 0.46319 On January 1, 2016, what amount should Stephen record as a debit to Lease Receivable?
QUESTION: 56 On January 1, 2016, Stephen Corp., a lessor, signed a direct financing lease. Stephen was to receive annual year-end payments of $10,000 for ten years, after which there was a guaranteed residual value of $8,000. The implicit interest rate was 8%. Actuarial information for 8%, ten periods follow: Present value of an ordinary annuity of $1 6.71008 Present value of the amount of $1 0.46319 On January 1, 2016, what amount should Stephen record as a debit to Lease Receivable?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Problem solve
Transcribed Image Text:QUESTION: 56
On January 1, 2016, Stephen Corp., a lessor, signed a direct financing
lease. Stephen was to receive annual year-end payments of $10,000 for
ten years, after which there was a guaranteed residual value of $8,000.
The implicit interest rate was 8%. Actuarial information for 8%, ten
periods follow:
Present value of an ordinary annuity of $1 6.71008
Present value of the amount of $1
0.46319
On January 1, 2016, what amount should Stephen record as a debit to
Lease Receivable?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education