On December 1, 2020, Carlos entered into a lease on a building for use in his business for $1,500 per month. Under the lease terms, Carlos pays 12 months’ rent ($18,000) in advance on December 1.  How much can Carlos deduct for rent in 2020?   a. $18,000   b. $1,000   c. $13,000   d. $12,000

On January 2, 2019,  Min leased an office space for an annual rental of P600,000 payable every yearend. The lease term is for five years and Min  has the option to extend the lease for another three years. The same annual rent shall be payable if the option is exercised, however, Min did not signify to exercise said option in 2019. The implicit interest rate on the lease is 12%. On January 1, 2021, Min decided to extend the lease when the implicit interest rate is 10%. How much is interest expense for 2021? How much is the depreciation expense for 2021?

On April 1, 2021, Primer Corp. signs a five-year lease to use office space. The present value of the monthly lease payments is $100,000. Record the lease.

Claude leased a facility from ML partnership in January 1, 2018. Terms of the lease were as follows: Annual rental 300,000 Annual real property tax assumed and paid by Claude 50,000 Security deposit 200,000 Lease term 12 years On January 1, 2018, Claude paid the annual rental for 2018 and 2019 including the security deposit (non-refundable). In addition to annual rental and real property taxes, part of the lease was for Claude to improve the facility. The improvement was completed on January 1, 202O. Details of the improvements were as follows: Cost of leasehold improvement - 6,000,000 Estimated useful life of improvement - 15 years Determine the income to be reported by ML partnership in 2020 assuming the company opted to report income from improvement using the spread-out method.

On January 1, 2020, Irwin Animation sold a truck to Peete Finance for $35,000 and immediately leased it back. The truck was carried on Irwin's books at $28,000. The term of the lease is 3 years, there is no bargain purchase option, and title does not transfer to Irwin at lease-end. The lease requires three equal rental payments of $8,696 at the end of each year (first payment on January 1, 2021). The appropriate rate of interest is 6%, the truck has a useful life of 5 years, and the residual value at the end of the lease term is expected to be $14,000, none of which is guaranteed. Prepare Irwin's 2020 journal entries.

On December 1, 2023, Oriole Corp. leased office space for 10 years at a monthly rental of $43000, under an operating lease. On that date Oriole paid the landlord the following amounts: Rent deposit $43000 First month's rent 43000 Last month's rent 43000 Installation of new walls and offices 157200 $286200 Oriole debited the entire $286200 payment to Prepaid Rent. How much should Oriole Corp recognize as rent expense for the year ended December 31, 2023? ○ $28620 ○ $44310 ○ $161500 ○ $43000

On January 1, 2019, Stacie signed a lease agreement with Amy. Amy will use the equipment and make ten annual payments of $25,000 beginning December 31, 2019. The lease is considered to be a finance lease. When reading the Amy income statement, you would expect to find which of the following accounts? A.Rent Revenue B.Rental Expense C.Interest Revenue D.Interest Expense

On December 31, 2021, Fins signs a four-year truck lease. The truck has a current value of $58,600. Four annual payments of $10,000 will be paid and the first payment will be made on December 31, 2021. After that time, the truck with a previous useful life of 8 years will be returned to the lessor. Fins has an incremental borrowing rate of 6%. The present value of a 4-year annuity payable of $10,000 at an annual rate of 6% is $36,700. The lessor has an implicit annual interest rate of 8% built into the contract. Fins is aware of this implied rate. The present value of a 4-year annuity due for $10,000 at an annual rate of 8% is $35,770. What liability should Fins report on its balance sheet as of December 31, 2021? A) 26,700 B)25,770 C) 10,000 D) 0

On January 1, 2019, Ballieu Company leases specialty equipment with an economic life of 8 years to Anderson Company. The lease contains the following terms and provisions: • The lease is noncancelable and has a term of 8 years. • The annual rentals are $28,900, payable at the beginning of each year. • The interest rate implicit in the lease is 12%. • Anderson agrees to pay all executory costs directly to a third party and is given an option to buy the equipment for $1 at the end of the lease term, December 31, 2026. • The cost of the equipment to the lessor is $144,000, and the fair value is approximately $160,800. • Ballieu incurs no material initial direct costs. • It is probable that Ballieu will collect the lease payments. • Ballieu estimates that the fair value is expected to be significantly greater than $1 at the end of the lease term.   Ballieu calculates that the present value on January 1, 2019, of 8 annual payments in advance of $28,900 discounted at…

Ravis Rent-A-Car Company leases a car to Ira Reem, an employee, on January 1, 2019. The term of the noncancelable lease is 4 years. The following information about the lease is provided: 1. Title to the car passes to Ira on the termination of the lease with no additional payment required by the lessee. 2. The cost and fair value of the car is $8,400. The car has an economic life of 5 years. 3. The interest rate implicit in the lease is 10%. 4. It is probable that Ravis will collect the lease payments. 5. Equal annual lease payments are due at the end of each year.   Prepare a table summarizing the lease receipts and interest income earned by the Ravis Rent-A-Car for the 4-year lease term. Additional Instructions   Ravis Rent-A-Car Company Summary of Lease Payments Received and Interest Income Earned (by Interest Method) 1 Date Annual Lease Payments Received Interest Income at 10% on Lease Receivable Reduction of Lease Receivable Lease…