Ryan Corp. (RC), a public company entered intp a five-year lease with susie's pet Co. (SPC) ON JUNE 1, 2020, for office space. RC will receive the monthly payments of $2,300 on the first of each month. The lease provides free rent for the first three months of the lease so the first payment from SPC is due on September 1, 2020. RC has determined the lease to be an operating lease. What amount of revenue will RC record on July 1, 2020?
1.) Ryan Corp. (RC), a public company entered intp a five-year lease with susie's pet Co. (SPC) ON JUNE 1, 2020, for office space. RC will receive the monthly payments of $2,300 on the first of each month. The lease provides free rent for the first three months of the lease so the first payment from SPC is due on September 1, 2020. RC has determined the lease to be an operating lease. What amount of revenue will RC record on July 1, 2020?
2.) On January 1 2020 Regional Lease Corp. (RLC) leased equipment to Sam Inc. for a five-year term. RLC's required
3.) On June 1 2020, Ready Leasing Inc. (Ready) purchased a customized piece of robotic machinery for $400,000 (FV of the machine) to be leased to Able Plastic Corp. (Able). The equipment has been customized to Able's specifications and therefore cannot be used by any other party. Details of the lease arrangement are as follows:
- lease term is 12 years commencing June 1 2020
- Able has the option to purchase the equipment for $30,000 at the end of the lease. The estimated value of the equipment at that time is $80,000
- Ready's required rate of return on the lease is 9%
- Able will make annual payments to Ready, the first payment is due on June 1 2020
What amount of annual payments is reuired under the lease?
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