Business
Business, 29.07.2019 21:00, jayzie1728

Jana kingston corporation enters into a lease on january 1, 2017, that does not transfer ownership or contain a bargain-purchase option. it covers 3 years of the equipment's 8-year useful life, and the present value of the minimum lease payments is less than 90% of the fair value of the asset leased.

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Business, 01.07.2019 17:10, sophiaa23
On january 1, 2017, seven wonders inc. signed a five-year noncancelable lease with moss company. the lease calls for five payments of $277,409.44 to be made at the end of each year. the leased asset has a fair value of $1,200,000 on january 1, 2017. seven wonders cannot renew the lease, there is no bargain purchase option, and ownership of the leased asset reverts to moss at the lease end. the leased asset has an expected useful life of six years, and seven wonders uses straight-line depreciation for financial reporting purposes. its incremental borrowing rate is 12%. moss’s implicit rate of return on the lease is unknown. seven wonders uses a calendar year for financial reporting purposes. both companies use asc 840 to account for leases. use tables (pv of 1, pvad of 1, and pvoa of 1) (use the appropriate factor(s) from the tables provided.) required: prepare an amortization schedule for the lease liability. prepare the journal entry to record. the lease as a capital lease on january 1, 2017. the lease payments on december 31, 2017 and 2018. the leased asset’s depreciation in 2017 and 2018. what is the total amount of expense reported on seven wonders’ 2017 income statement from the lease?
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Business, 02.07.2019 04:20, aprilnicky4110
Howell corporation, a publicly traded corporation, is the lessee in a leasing agreement with brandon inc. to lease land and a building. if the lease contains a bargain purchase option, howell should record the land and the building as a(n)a. operating lease and capital lease, respectively.b. capital lease and operating lease, respectively.c. capital lease but recorded as a single unit.d. capital lease but separately classified.
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Business, 17.08.2019 21:10, morganwendel126
Assume that ibm leased equipment that was carried at a cost of $195,000 to sharon swander company. the term of the lease is 7 years beginning january 1, 2017, with equal rental payments of $33,816 at the beginning of each year. all executory costs are paid by swander directly to third parties. the fair value of the equipment at the inception of the lease is $195,000. the equipment has a useful life of 7 years with no salvage value. the lease has an implicit interest rate of 7%, no bargain-purchase option, and no transfer of title. collectibility is reasonably assured with no additional cost to be incurred by ibm. assume the direct-financing lease was recorded at a present value of $195,000. prepare ibm’s december 31, 2017, entry to record interest.
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