The implicit rate of the lease. Given information: Lease term is 4 years. Economic life of equipment is 10 years. There is no purchase option in the lease. There is no transfer of title clause in the lease. Estimated unguaranteed residual value is $1,200. Fair value of the asset is $18,000. Carrying value of asset is $15,500. Annual lease payments are $4,500.
The implicit rate of the lease. Given information: Lease term is 4 years. Economic life of equipment is 10 years. There is no purchase option in the lease. There is no transfer of title clause in the lease. Estimated unguaranteed residual value is $1,200. Fair value of the asset is $18,000. Carrying value of asset is $15,500. Annual lease payments are $4,500.
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
Chapter 18, Problem 18.8P
a.
To determine
The implicit rate of the lease.
Given information:
Lease term is 4 years.
Economic life of equipment is 10 years.
There is no purchase option in the lease.
There is no transfer of title clause in the lease.
Estimated unguaranteed residual value is $1,200.
Fair value of the asset is $18,000.
Carrying value of asset is $15,500.
Annual lease payments are $4,500.
b.
To determine
The classification of lease.
Given information:
Lease term is 4 years.
Economic life of equipment is 10 years.
There is no purchase option in the lease.
There is no transfer of title clause in the lease.
Estimated unguaranteed residual value is $1,200.
Fair value of the asset is $18,000.
Carrying value of asset is $15,500.
Annual lease payments are $4,500.
c.
To determine
To prepare: The journal entries for the lessor under operating lease.
Given information:
Lease term is 4 years.
Economic life of the equipment is 10 years.
There is no purchase option in the lease.
There is no transfer of title clause in the lease.
Hi expert please give me answer general accounting question
XYZ Technologies, Inc., purchased advanced robotics equipment three years ago
for $20 million. The machinery can be sold in the current market for $18.5 million.
XYZ's current balance sheet shows net fixed assets of $16 million, current
liabilities of $750,000, and net working capital of $300,000. If all current assets
were liquidated today, the company would receive $1.25 million in cash.
a. What is the book value of XYZ's total assets today?
b. What is the market value of XYZ's total assets today?