Each of the four independent situations below describes a capital lease in which annual lease payments are payable at the beginning of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Lease Term Lessor's rate of Return Fair Value of leased asset Lessor's cost of leased asset Residual Value: 4 7 5 8 10% 11% 9% 12% 50000 350000 | 75000 465000 50000 350000 45000 465000 0 50000 0 30000 Guaranteed by lessee 0 0 7000 15000 Unguaranteed Determine the annual lease payments for each situation QUESTION: Bowler Inc. owns 30% of Yarby Co. and applies the equity method. During the current year, Bowler bought inventory costing $66,000 and then sold it to Yarby for $120,000. At year-end, only $24,000 of merchandise was still being held by Yarby. What amount of unrealized gain must be deferred by Bowler?
Each of the four independent situations below describes a capital lease in which annual lease payments are payable at the beginning of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Lease Term Lessor's rate of Return Fair Value of leased asset Lessor's cost of leased asset Residual Value: 4 7 5 8 10% 11% 9% 12% 50000 350000 | 75000 465000 50000 350000 45000 465000 0 50000 0 30000 Guaranteed by lessee 0 0 7000 15000 Unguaranteed Determine the annual lease payments for each situation QUESTION: Bowler Inc. owns 30% of Yarby Co. and applies the equity method. During the current year, Bowler bought inventory costing $66,000 and then sold it to Yarby for $120,000. At year-end, only $24,000 of merchandise was still being held by Yarby. What amount of unrealized gain must be deferred by Bowler?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Each of the four independent situations below describes a
capital lease in which annual lease payments are payable at
the beginning of each year. (FV of $1, PV of $1, FVA of $1,
PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate
factor(s) from the tables provided.)
Lease Term
Lessor's rate of Return
Fair Value of leased asset
Lessor's cost of leased
asset
Residual Value:
4
7
5
8
10%
11%
9%
12%
50000 350000 | 75000 465000
50000 350000 45000 465000
0
50000 0
30000
Guaranteed by lessee
0
0
7000 15000
Unguaranteed
Determine the annual lease payments for each situation
QUESTION:
Bowler Inc. owns 30% of Yarby Co. and
applies the equity method. During the
current year, Bowler bought inventory
costing $66,000 and then sold it to Yarby
for $120,000. At year-end, only $24,000 of
merchandise was still being held by Yarby.
What amount of unrealized gain must be
deferred by Bowler?
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