Price of the option to purchase good deals at the end of the 4,000.00 rental period Hello, please let me know if you have any questions On January 1, 2014, Bensen Company leased the equipment to Flynn Corporation. The following information refers to this lease. The term of the non-cancellable lease is 6 years, with no renewal option. The equipment is the owner`s responsibility at the end of the lease. 2.The same rents are due on January 1 of each year from 2014. 3.La fair value of the equipment as of January 1, 2014 is $208,600 and its cost is $160,622. The equipment has an economic life of 8 years, with an unsecured residual value of $4.10,810. Flynn devalues all his equipment on a straight line. Bensen set the annual rent to ensure a 10% return. Flynn 5`s incremental borrowing.
11% and the implied rate of the lessor is unknown. The collection of rents is reasonably predictable and no significant uncertainties 6. the amount of costs that still have to be borne by the owner. 1. (the lessor and the landlord`s settlement period expire on December 31) see Table 6-5 and 6-2 Figure 1. Calculate the annual rent. 2. Prepare all the log entries needed for Flynn for 2014 3. Prepare all the log entries needed for Bensen for 2014 1.
Answer: Calculating the amount of the annual rent: $208,600 up to $10,810-0.56447)/4,79079 – $42268 – Current value from 1 DOLLAR to 10% for 6 periods. Current value of a pension payable at 10% for 6 periods. 2. Answer: 1/1/14 Leasing units under capital leasing………. 198486 Rental liability…….. 19848..b. Prepare a timetable for amortization of leases for Mooney Leasing Company for the 5-year lease term. Annual rental at the beginning of each year, as of May 1, 2019 20,471.94 a. Prepare a depreciation plan that would be suitable for the taker. 3 The machine could have been sold by Young Co. for $940,000 instead of renting it. (a) Prepare newspaper entries in Castle Leasing`s books to reflect payments received under the lease and to record revenues for 2014 and 2015.
(Account securities are automatically withdrawn when the amount is entered. Do not enter manually. Cash factor calculations at the 5th decimal place, z.B 0.527552 and final responses to 0 decimals z.B 5,275.) c. Prepare the newspapers to reflect the signing of the lease and record the revenues and revenues associated with the lease for 2014, 2015 and 2016. The landlord`s billing period ends on December 31. Reversible entries are not used by Mooney. Accounting 21-2 Pat Delaney Company leases an automobile with a fair value of $8.725 from John Simon Motors, Inc. on the following terms.
e) Register the first month`s lease. (Account securities are automatically withdrawn when the amount is entered. Do not enter manually. Round answers to the 0 decimal place, z.B. 15.) The following facts relate to an unredeated lease agreement between Mooney Leasing Company and Rode Company, a taker. (a) What is the current value of the minimum lease-lease-lease online allocation strategy-Strategy Office Design Office via Land Trucking Economy Cost Products Physical Investment Accounting Problems The assets will be returned to the lessor at the end of the lease period.