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2. Record the Initial journal entry at commencement of the lease. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Round your answers to the nearest whole dollar amount. Do not round Intermediate calculations.) No Transaction A 1 ROU asset Maintenance expense Answer is not complete. General Journal Debit Credit 410,090 410,090 3. How much will Niko record as an asset if the residual value is unguaranteed? (Round your Intermediate calculations and final answer to the nearest whole dollar amount.) Value of the asset

2. Record the Initial journal entry at commencement of the lease. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Round your answers to the nearest whole dollar amount. Do not round Intermediate calculations.) No Transaction A 1 ROU asset Maintenance expense Answer is not complete. General Journal Debit Credit 410,090 410,090 3. How much will Niko record as an asset if the residual value is unguaranteed? (Round your Intermediate calculations and final answer to the nearest whole dollar amount.) Value of the asset

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Niko Ltd. signed a lease for a five-year term that requires yearly, beginning-of-year payments of $104,000 including maintenance. Based on allocating the lease payment on relative stand-alone prices, the lease component is $94,400 and the non-lease component for maintenance is $9,600. Niko has a residual guaranteed value of $26,500 at the end of the lease term. Niko's IBR is 10%. (PV of $1. PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the ROU asset. (Round your Intermediate calculations and final answer to the nearest whole dollar amount.) ROU asset Answer is complete and correct. $ 410,090 2. Record the initial journal entry at commencement of the lease. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. Round your answers to the nearest whole dollar amount. Do not round Intermediate calculations.) No Transaction >> A 1 ROU asset Maintenance expense Answer is not complete. General Journal Debit Credit 410,090 410,090 3. How much will Niko record as an asset if the residual value is unguaranteed? (Round your Intermediate calculations and final answer to the nearest whole dollar amount.) Value of the asset
Transcribed Image Text:Niko Ltd. signed a lease for a five-year term that requires yearly, beginning-of-year payments of $104,000 including maintenance. Based on allocating the lease payment on relative stand-alone prices, the lease component is $94,400 and the non-lease component for maintenance is $9,600. Niko has a residual guaranteed value of $26,500 at the end of the lease term. Niko's IBR is 10%. (PV of $1. PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the ROU asset. (Round your Intermediate calculations and final answer to the nearest whole dollar amount.) ROU asset Answer is complete and correct. $ 410,090 2. Record the initial journal entry at commencement of the lease. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field. Round your answers to the nearest whole dollar amount. Do not round Intermediate calculations.) No Transaction >> A 1 ROU asset Maintenance expense Answer is not complete. General Journal Debit Credit 410,090 410,090 3. How much will Niko record as an asset if the residual value is unguaranteed? (Round your Intermediate calculations and final answer to the nearest whole dollar amount.) Value of the asset
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