On january 1, 2004, digital, inc. leased heavy machinery from young leasing company. the terms of the lease require annual payments of
$20,000 for twenty years beginning on december 31, 2004. the interest rate on the lease is 10%.
assume the lease qualifies as acapital lease.
1. calculate the amount of the lease liability at december 31, 2005 that would be classified as a current liability.
2. calculate the balance in the lease liability account on december 31, 2005 after the second lease payment is made. you!

If a company’s employees are angry about their work, a visiting auditor may also become agitated, illustrating the power of

James albemarle created a trust fund at the beginning of 2016. the income from this fund will go to his son edward. when edward reaches the age of 25, the principal of the fund will be conveyed to united charities of cleveland. mr. albemarle specified that 75 percent of trustee fees are to be paid from principal. terry jones, cpa, is the trustee. james albemarle transferred cash of $500,000, stocks worth $400,000, and rental property valued at $250,000 to the trustee of this fund. immediately invested cash of $360,000 in bonds issued by the u. s. government. commissions of $7,900 are paid on this transaction. incurred permanent repairs of $9,000 so that the property can be rented. payment is made immediately. received dividends of $8,000. of this amount, $3,000 had been declared prior to the creation of the trust fund. paid insurance expense of $4,000 on the rental property. received rental income of $10,000. paid $8,000 from the trust for trustee services rendered. conveyed cash of $7,000 to edward albemarle.

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