CHAPTER 21 Accounting for Leases SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 21-1 The lease does not meet the transfer of ownership test, the bargain purchase test, or the economic life test [(5 years ÷ 8 years) < 75%]. However, it does pass the recovery of investment test. The present value of the minimum lease payments ($31,000 X 4.16986 = $129,266) is greater than 90% of the FV of the asset (90% X $138,000 = $124,200). Therefore, Callaway should classify the lease as a capital lease. BRIEF EXERCISE 21-2 Leased Equipment 150,000 Lease Liability 150,000 Lease Liability 43,019 Cash 43,019 BRIEF EXERCISE 21-3 Interest Expense 29,530 Interest Payable [($300,000 – $53,920) X 12%] 29,530 Depreciation …show more content…
Costs | |Reduction of Lease | | | | |Interest (12%) on Liability |Liability | | |Date | | | |Lease Liability | |1/1/12 | | | |$550,000 | |1/1/12 |$86,912 |$ 0 |$86,912 |463,088 | |1/1/13 |86,912 |55,571 |31,341 |431,747 | |1/1/14 |86,912 |51,810 |35,102 |396,645 | EXERCISE 21-4 (20–25 minutes) Computation of annual payments Cost (fair value) of leased asset to lessor $240,000.00 Less: Present value of salvage value (residual value in this case) $16,000 X .82645 (Present value of 1 at 10% for 2 periods) 13,223.20 Amount to be recovered through lease payments $226,776.80 Two periodic lease payments $226,776.80 ÷ 1.73554* $130,666.42 *Present value of an ordinary annuity of
1. (Table: Barrels of Oil) Refer to the table. How many barrels of oil should the company produce
The Eskimo’s predict the sudden sea squalls but studying the habits of seals. The elder Eskimo was explaining seal patterns for when a seal comes up for breathe under the water. If the seal comes out of the water to breath with its back arched up right to sky and it’s head fully out of the water exposed then the weather will be a normal. But if the seal surfaces faced down with halfway submerged under water still then this was a preview for ominous weather to come that day.
The Constitution was an attempt to address problems of decentralization that were experienced under the Articles of Confederation.
1. Chapter 1, is about introducing the Tres Camarones, the state of Sinaloa, Mexico. Also, since the people in that town didn’t like change much there are already danger roaming around like the bandidos who will be evading the town.
Jonah goes for a visit to Alex’s plant after the flight arrives. He ask Alex tell him more information about the plant’s background. Jonah point out a point that is the aim of increase the production is only can do by increasing capacity at the bottleneck operations. Alex starts to confuse and think to increase the capacity of the plant. He plans to purchase another machine but he not sure that he have neither time nor the budge to do that. In the other hand, Jonah remind Alex about the production might be increase if the machine run more effectively.
Many years ago, Athens, Greece, was viewed as a necessary part of any tour of Europe. Then the city developed an image of a smoggy city choked with traffic. During the _____ stage of its attempt to reposition Athens as a culture-filled destination for conventions, the Greek government realized package tour operators (a source of much of the tourist traffic in Greece) were unimpressed by the proposal to paint the facades of the buildings in Athens and to plant 100s of trees and bushes.
Chapter seven of The View from Saturday starts off back at Academic Bowl Day, where Julian has just contradicted the advisory panel’s sources. This does not worry The Souls, who are ready to let Julian risk it all. Julian repeatedly tells the commissioner that the panel’s information is incomplete. Then, in a flashback, Konigsburg tells the reader more about how Mrs. Olinski’s team prepared. This occurs in third person point-of-view. The week of the district competition, The Souls and Mrs. Olinski brown-bagged their lunches in order to practice during lunch. Mrs. Olinski’s team continued to amaze her with their complimentary skills. They seemed to communicate with “a secret stealth language.” The day before the district competition, Conner LeDue, the principal of
19 Facilitate learning and development activities to meet individual needs and preferences (HSC 3004) Assessment of this unit This unit introduces you to the knowledge and skills that are needed to support individuals to plan, take part in and evaluate learning and development activities. It focuses on the benefits of learning and development activities to individuals, the importance of identifying individual needs and the role of the practitioner in planning, preparing, facilitating and reviewing learning and development activities. You will need to: 1.
The statement applies an everyday situation to the reader and give the reader what to apply from the information they were given. Everyday situation was about giving the salesclerk your credit card. We never view a situation other ways until we process the information we were given. You had to think about someone who is reliable to use my credit card information. The author attacked us with a lot of information we might not have understood in order to carefully apply the word they uses to comprehend.
As an appointed Ambassador of health I would redefine the health care paradigm to emcompass both a wellness and prevention oriented health care paradigm. One in which places great emphasis on the importance of body structure as it affects function and health. In the case of health care these days, the general public have been continously sold on the idea that taking care of themselves means using the tools of modern medicine, particularly prescription drugs. The overall goal would be to increase the number of Chiropratic members not only in the United States but world wide.
In Chapter 3, Culturally Responsive Teaching in Diverse Classrooms, multiculturalism was front and center. The text presented the ideas of having culturally relevant pedagogy, teachers accepting the whole-child, and how learner exceptionality is implemented into instruction. The chapter also covered information on the development of classroom environments, and the use of students’ funds of knowledge to better aid them in connecting with learning.
Chapter 10 begins with Job wallowing in self-pity. Often when we face suffering in our lives, we tend to start feeling sorry for ourselves as well. We can become self-righteous and start to point at God for our misfortune.
Aldrick mutters as he slips the bullet into the cylinder, he always knew this day would come, but the fact they choose to strike the household at it weakest moment infuriates him. It only take two days for the news to spread, and they come like vultures seeking carrion. He took a deep breath and set the last 5 bullets into the chamber, years of serving the military had taught him not to lose his temper in situation like this. A shuffling noise caught his attention, he look up to find the young master, staring solemnly out the window. With a flick of his wrist, the cylinder sets back into the revolver. He tuck the revolver away in his coat pocket and stood up from the coffee table, he stroll toward the young