Industrial Electric Services has a contract with an Embassy in Mexico to provide maintenance for scanners and other devices in the building. What is the present worth of the contract (in year 0) if the company will receive a total of nine $12,000 payments beginning in year 2 and ending in year 10 and the interest rate is 10% per year.

On January 1, Year 1, Autonomous Systems Ltd. (ASL) signed a contract to lease computer equipment from Lenovo for three years. The lease agreement requires ASL to pay $30,000 at the end of each year of the lease. The company's borrowing rate is 6%. Under U.S. GAAP, the lease would be classified as operating. However, ASL is based in Singapore and will account for the lease using IFRS.   How much higher (or lower) are ASL's expenses related to this lease in Year 1 as accounted for under IFRS compared to how much expense would be recorded related to this lease in Year 1 under U.S. GAAP? Use a negative sign to denote that IFRS expenses are a lower amount, if needed.

On May 1, 2021 Race Cars Inc. enters into a contract with a major U.S. racing program to design and distribute training equipment.  Under the terms of the contract,  Race Cars will deliver the training equipment on August 1, 2022.  The customer will pay $300,000 to  Race Cars, Inc. on May 15, 2021.     Interest incurred on similar financing agreements in the industry is $35,000.    What is the transaction price Which should Race Cars, Inc. recognize:   interest expense or  interest income for this transaction?

Valpre Limited, a South African-based Savory manufacturing company, intends to expand its output capacity in order to meet the expected increase in demand from the industry. The company plan is to acquire a new machine from China. They have the option to either lease or purchase the new machinery. The machinery has a cost of R1 800 000.LEASE:The company can lease the machinery under a three-year lease. They have to make a payment of R720 000 at the end of each year. Valpre Limited has the option to buy the machinery at the end of the lease for R600 000 and the financial manager intends on exercising this option. Monthly insurance costs of R24 000 are borne by the lessee.BUY:Alternatively, the company could finance the R1 800 000 cost of the machinery through its retained earnings, payable upfront. Valpre Limited will also pay an additional R312 000 per year for insurance costs while the current running costs (water and electricity) for similar machines are R60 000 per annum.Insurance…