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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Calculate the NOI of a property based upon the information provided below: Building area: Average base rents: .NNN recoveries: Vacancy rate: Operating expenses . . • Percentage rent . Concessions . Annual debt service 165,720 O 315,720 O 375.720 440,220 O 478.500 O None of these 15,000 sqft $27.50 psf $4.00 psf 5.0% $4.30 psf $6,000 per year 3.0% $210,000 per year
5/1/25 Lease Receivable 5/1/25 12/31/25 Cost of Goods Sold Sales Revenue Inventory (To record the lease) Cash Lease Receivable (To record lease payment) Lease Receivable Interest Revenue 5/1/26 Cash Lease Receivable Interest Revenue 12/31/26 Lease Receivable Interest Revenue 98000.20 65000 20456.70 20456.70 98
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Oriole Company specializes in leasing large storage units to other businesses. Oriole entered a contract to lease a storage unit to Ivanhoe, Inc. for 4 years when that particular storage unit had a remaining useful life of 5 years. The fair value of the unit was $15,000 at the commencement of the lease on January 1, 2025. The present value of the five equal rental payments of $3,808 at the start of each year, plus the present value of a guaranteed residual value of $1,000, equals the fair value of $15,000, Oriole's implicit rate of return on the lease of 5%. The following is a correct, complete amortization schedule created by Oriole. Date 1/1/25 1/1/25 1/1/26 1/1/27 1/1/28 12/31/28 Lease Payment $3,808 3,808 3,808 3,808 1,000 $16,232 Interest (5%) on Outstanding Lease Receivable $560 397 227 48 $1,232 Reduction of Lease Receivable $3,808 3,248 3,411 3,581 952 $15,000 Balance of Lease Receivable $15,000 11.192 7,944 4,533 952 0 Given the above schedule, make the appropriate entries at…
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hr.3
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.
A-2
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?