Business, 18.06.2020 01:57, Aethis

E21.24 (LO 5) (Lessee-Lessor, Sale-Leaseback) Respond to the requirements in each situation. Instructions
a. On January 1, 2017, Zarle Inc. sold computer equipment to Daniell Co. The sales price of the equipment was $520,000 and its carrying amount is $400,000. Record any Journal entries necessary for Zarle from the sale of the computer equipment in 2017.
b. Use the information from part a. Assume that, on the same day the sale occurred, Zarle enters into an agreement to lease the equipment from Daniell for 10 years with annual lease payments of $67,342.42 at the end of each year, beginning on December 31, 2017. If Zarle has an incremental borrowing rate of 5% and the equipment has an economic useful life of 10 years, record any journal entries necessary for Zarle from the sale and leaseback of computer equipment in 2017.
c. Using same information in a. above, assume that on the same day the sale occurred, Zarle enters into an agreement to lease the equipment from Daniell for 10 years with annual lease payments of $67,342.42 at the end of each year, beginning on 12/31/17. If Daniell has an implicit rate of 5% and Zarle has an incremental borrowing rate of 5% and the equipment has an economic useful life of 10 years, record any journal entries necessary for Zarle from the sale and leaseback of computer equipment in 2017.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 11:30, ninaa8748

When the amount for land is 36,000 and the amount paid for expenses is 10,000, the balance of total asset is

Answers: 2

continue

Business, 22.06.2019 20:00, LJ710

Miller mfg. is analyzing a proposed project. the company expects to sell 14,300 units, plus or minus 3 percent. the expected variable cost per unit is $15 and the expected fixed cost is $35,000. the fixed and variable cost estimates are considered accurate within a plus or minus 3 percent range. the depreciation expense is $32,000. the tax rate is 34 percent. the sale price is estimated at $19 a unit, give or take 3 percent. what is the net income under the worst case scenario?

Answers: 2

continue

Business, 22.06.2019 21:30, girlhooper4life11

Suppose that alexi and tony can sell all their street tacos for $2 each and all their cuban sandwiches for $7.25 each. if each of them worked 20 hours per week, how should they split their time between the production of street tacos and cuban sandwiches? what is their maximum joint revenue?

Answers: 3

continue

Business, 23.06.2019 02:10, jljhenkel

Which of the following best explains the purpose of a supply schedule? a. to calculate how much time it takes for distribution. b. to indicate how supply and demand relate to price. c. to show the relationship between quantity supplied and prices. d. to demonstrate how the supply decreases as price increases.

Answers: 1

continue

Do you know the correct answer?

E21.24 (LO 5) (Lessee-Lessor, Sale-Leaseback) Respond to the requirements in each situation. Instru...