Sunland Company enters into a lease agreement with Carla Vista Inc. to lease office space for a term of 72 months. Lease payments during the first year are $6,900 per month. Each year thereafter, the lease payments increase by an amount equivalent to the percentage increase in the Consumer Price Index (CPI). For example, if the CPI increases 2% in the second year, the monthly payment increases to $7,038. In the second year, the CPI increases by 3%. What are the lease payment amounts used to record this lease in the second year? Lease payment $ 85284
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- Sheridan Company enters into a lease agreement with Sunland Inc. to lease office space for a term of 72 months. Lease payments during the first year are $6,800 per month. Each year thereafter, the lease payments increase by an amount equivalent to the percentage increase in the Consumer Price Index (CPI). For example, if the CPI increases 2% in the second year, the monthly payment increases to $6,936. In the second year, the CPI increases by 3%. What are the lease payment amounts used to record this lease in the second year? Lease payment $ 84,048Harcourt Company enters into a lease agreement with Brunsell Inc. to lease office space for a term of 72 months. Lease payments during the first year are $5,000 per month. Each year thereafter, the lease payments increase by an amount equivalent to the percentage increase in the Consumer Price Index (CPI). For example, if the CPI increases 2% in the second year, the monthly payment increases to $5,100. In the second year, the CPI increases by 3%. What are the lease payment amounts used to record this lease in the second year?× Your answer is incorrect. Sunland Company enters into a lease agreement with Carla Vista Inc. to lease office space for a term of 72 months. Lease payments during the first year are $6,900 per month. Each year thereafter, the lease payments increase by an amount equivalent to the percentage increase in the Consumer Price Index (CPI). For example, if the CPI increases 2% in the second year, the monthly payment increases to $7,038. In the second year, the CPI increases by 3%. What are the lease payment amounts used to record this lease in the second year? Lease payment 85284
- A retail tenant signed a lease agreeing to pay $12.00/SF in base rent plus 3% of sales over a breakpoint of $1.8 million. If the retailer has $6.0 million in sales this year, how much will that retailer have to pay in percentage rent?One of the departments at Yolo Industries has entered into a 9 year lease for a piece of equipment. The annual payment under the lease will be $3,600, with payments being made at the beginning of each year. If the discount rate is 10%, the present value of the lease payments is closest to (Ignore income taxes.): Click here to view Exhibit 14B-1 and Exhibit 148-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.) Multiple Choice $22,806 $10,07Y $22,105 $32,400domebo Corporation has entered into a 7 year lease for a piece of equipment. The annual payment under the lease will be $3,400, with payments being made at the beginning of each year. If the discount rate is 14%, the present value of the lease payments is closest to (Ignore income taxes.): Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.)
- A firm needs some machinery which it can lease from the manufacturer for a five-year period by making lease payments of $8,000 at the end of each month. If the interest rate for the firm is 8% p.a., with monthly compounding, the present value of the lease payments is closest to: O $394,547. $380,289. $383,300. O $470,547.You end up leasing $17389.93 after the down payment and taxes for 4 years. The interest rate is 1.74% compounded monthly. The lease payment is monthly and due at the beginning of the month. How much has been paid, on the lease, over the 4-year period? Round your answer to two decimal places. Do not enter the dollar sign. Sample input: 24562.23 (Hint: The down payment has already been taken off. So find the PMT value in the Simple Annuity Due formula using your leased amount. You can also use the TVM solver to find PMT. Then find the total value of these monthly payments over the length of the lease; i.e., take your PMT and multiply by the total number of payments you make.)Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the lease will be $2,468. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 5%, the present value of the lease payments is closest to (Ignore income taxes.): Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice O O $14,808 $11,050 $14,103 $12,528
- Jenny Enterprises has just entered a lease agreement for a new manufacturing facility. Under the terms of the agreement, the company agreed to pay rent of $14,000 per month for the next 7 years with the first payment due today. If the APR is 6.84 percent compounded monthly, what is the value of the payments today? Multiple Choice (select the correct answer) $932,426.66 $972,749.39 $910,473.03 $852,492.27 $937,741.49Jenny Enterprises has just entered a lease agreement for a new manufacturing facility. Under the terms of the agreement, the company agreed to pay rent of $21,500 per month for the next 10 years with the first payment due today. If the APR is 8.64 percent compounded monthly, what is the value of the payments today? Multiple Choice O $1,736,054.71 O $1,827,671.21 O $1,723,644.47 O $1,578,231.55 O $1,682,318.86Benning Manufacturing Company is negotiating with a customer for the lease of a large machine manufactured by Benning. The machine has a cash price of $800,000. Benning wants to be reimbursed for financing the machine at an 8% annual interest rate. Required: 1. Determine the required lease payment if the lease agreement calls for 10 equal annual payments beginning immediately. 2. Determine the required lease payment if the first of 10 annual payments will be made one year from the date of the agreement. 3. Determine the required lease payment if the first of 10 annual payments will be made immediately and Benning will be able to sell the machine to another customer for $50,000 at the end of the 10-year lease.