jt.3 Brooks Company leases a machine from Chalon Company on 1/1/23. Given:Asset FMVAsset Book ValueJanuary 1 paymentsGuaranteed Salvage Value$100,000$85,000$10,000$6,0005%Lessee expected salvage valueImplicit and incremental ratesFive-year lease; five-year asset FINANCE LEASESelect one:Oa. $100,000O b. $15,000Oc. $79,725.98Od. $83.712.28Oe. $75,739.68Compute Chalon's 12/31/23 Lease Receivable balance

The lease receivable balance refers to the amount of money that a lessor (the company leasing out an…

Brooks Company leases a machine from Chalon Company on 1/1/23. Given: Asset FMV Asset Book Value January 1 payments Guaranteed Salvage Value $100,000 $85,000 $10,000 Lessee expected salvage value $6,000 Implicit and incremental rates 5% Five-year lease; five-year asset FINANCE LEASE Compute Chalon's 12/31/23 Lease Receivable balance Select one: Oa. $100,000 Ob. $15,000 Oc. $79,725.98 Od. $83.712.28 Oe. $75,739.68

Brooks Company leases a machine from Chalon Company on 1/1/23. Given: Asset FMV Asset Book Value January 1 payments Guaranteed Salvage Value $100,000 $85,000 $10,000 Lessee expected salvage value $6,000 Implicit and incremental rates 5% Five-year lease; five-year asset FINANCE LEASE Compute Chalon's 12/31/23 Lease Receivable balance Select one: Oa. $100,000 Ob. $15,000 Oc. $79,725.98 Od. $83.712.28 Oe. $75,739.68

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 6P: Sales-Type Lease with Unguaranteed Residual Value Lessor Company and Lessee Company enter into a...

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mpany purchaseda Problem 10-32 (IFRS) under a finance At the beginning of current year, Southstar Company leased a building with the following information: ity were originally Annual rental payable at the end of each lease year Initial direct cost paid Lease incentive received Lease bonus paid to lessor before commencement of lease Present value of cost of restoring the building as required by contract discounted at 8% Purchase option that is reasonably certain Lease term Useful life of building Implicit inierest rate Present value of an ordinary annuity of 1 at 10% for 6 periods Present value of 1 at 10% for 6 periods 1,500,000 405,000 50,000 300,000 lated depreciation and the remaining 0,000. -P1,500,000 cash. 945,000 1,000,000 6 years 10 years 10% 4.36 0.56 of the machinery 1. What amount should be recorded initially as cost of right of use asset? a. 8,750,000 b. 8,700,000 c. 9,900,000 d. 7,755,000 2. What amount should be recorded as annual depreciation of the right of the asset?…
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