Unit Leasing Assumptions Suite Commencement Expiration Term (years) Area (sq. ft.) Year 1 Year 2 Year 3 Year 4 Year 5 102 Market Rent Information Years 1-3 Years 4-5 2015 $20.00 $21.50 5 2016 $20.00 $21.50 1,300 2017 $20.50 $22.00 Rate Schedule Start 2018 $21.00 $22.50 End Rate/psf 2019 $21.50 $23.00 2020 $21.50 $23.00 Calender Year Annual Rent 2018 2019 2020 2021 2022 Note 2020 Ends Hold Period. Caluculate 2021 but it does not transfer to Income Statement

Unit Leasing Assumptions Suite Commencement Expiration Term (years) Area (sq. ft.) Year 1 Year 2 Year 3 Year 4 Year 5 102 Market Rent Information Years 1-3 Years 4-5 2015 $20.00 $21.50 5 2016 $20.00 $21.50 1,300 2017 $20.50 $22.00 Rate Schedule Start 2018 $21.00 $22.50 End Rate/psf 2019 $21.50 $23.00 2020 $21.50 $23.00 Calender Year Annual Rent 2018 2019 2020 2021 2022 Note 2020 Ends Hold Period. Caluculate 2021 but it does not transfer to Income Statement

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 5C: Initial Direct Costs Efland Company leases equipment to Orange Company. Efland incurred the...

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What is the Net Effective Rent using the following data? Five year gross step up lease with expense stops Gross rents Yr. 1 = $23.00, increasing 3% each year beginning Yr. 2 Operating Expense Yr. 1 $12.00, increasing 2% each year beginning Yr. 2 %3! Expense Stop at $12.00 Round to two decimals for the rents. O $12.77 O $11.84 O $12.29 O $12.56
H1. Account 8% rate of return with annual rental payment of 81419
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You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based order fulfillment/distribution/office/warehouse property. In addition to recoverable operating expenses, the new tenant will be billed for pass throughs including insurance and property taxes, which will then be paid by the owner. The information given to you is listed below. Property Information: BETTS DISTRIBUTION CENTER Age of Improvement Rentable Space Single Tenant Financial Information: Rent 8 years old 230,000 square feet 10-year lease term, net, net Recoverable Expenses from Tenant Operating Expenses Property Taxes Insurance Other Cash Outlays: Allowances for: Recurring CAPEX/Improve Allowance $7.00 per square feet (7-year term), flat $3.00 per square feet, fixed $775,000 $53,000 $18,000 $67,500 Required: a. Develop a pro forma statement for the Betts property for a base year showing net operating income (NOI).
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How much should Thelma report as net investment in lease on December 31, 2022 statement of financial position? a. P 291,049 b. P 320,154 c. P 321, 049 d. P 331, 049 please explain the answer and provide the solution in good accounting form.
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Initial Direct Costs Efland Company leases equipment to Orange Company. Efland incurred the following costs associated with the lease: Advertising to find a lessee20,000 Commissions for the salesperson25,000 Negotiating fees to sign the contract10,000 Payment to an existing lessee to terminate its lease early30,000 General overhead associated with the leased asset10,000 Required: 1. Explain what initial direct costs are. 2. Indicate precisely how Efland should account for initial direct costs if this lease is (a) an operating lease, (b) a sales-type lease, and (c) a direct financing lease. 3. Which of the above amounts should Efland consider initial direct costs?
Question Content Area A six-year operating lease requires annual rent payments of $15,000 for years 1, 2, and 3, and annual rent payments of $10,000 for years 4, 5, and 6. The agreement also requires the lessor to pay a $2,800 annual insurance premium for the leased property. Which of the following amounts should be recognized as the rental revenue in year 1 by the lessor? $10,000 $16,800 $15,000 $13,500
t27 In IFRS 16 par. 74, initial direct costs incurred by a lessor in consummating a manufacturer’s or dealer’s lease areA. charged to unearned income in the first period of the lease term.B. charged to expense in the first period of the lease term.C. deferred and allocated over the lease term in proportion to the recognition of rent revenue.D. deferred and allocated over the lease term on a straight-line basis.
mpany purchaseda Problem 10-32 (IFRS) under a finance At the beginning of current year, Southstar Company leased a building with the following information: ity were originally Annual rental payable at the end of each lease year Initial direct cost paid Lease incentive received Lease bonus paid to lessor before commencement of lease Present value of cost of restoring the building as required by contract discounted at 8% Purchase option that is reasonably certain Lease term Useful life of building Implicit inierest rate Present value of an ordinary annuity of 1 at 10% for 6 periods Present value of 1 at 10% for 6 periods 1,500,000 405,000 50,000 300,000 lated depreciation and the remaining 0,000. -P1,500,000 cash. 945,000 1,000,000 6 years 10 years 10% 4.36 0.56 of the machinery 1. What amount should be recorded initially as cost of right of use asset? a. 8,750,000 b. 8,700,000 c. 9,900,000 d. 7,755,000 2. What amount should be recorded as annual depreciation of the right of the asset?…