FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On December 31, 2024, Cullumber Company leased machinery from
Ivanhoe Corporation for an agreed - upon lease term of 3 years Cullumber
agreed to make annual lease payments of $22, 000, beginning on
December 31, 2024. The expected residual value of the machinery at the
end of the lease term is $11,000. Your answer is incorrect. Cullumber
guarantees a residual value of $11,000 at the end of the lease term. What if
the expected residual value at the end the lease term is $8,000 and
Cullumber guarantees a residual of $11,000 ? (For calculation purposes,
use 5 decimal places as displayed in the factor table provided and round
final answer to 0 decimal places, e.g. 5, 275.) Click here to view factor
tables. Lease liability $
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Transcribed Image Text:On December 31, 2024, Cullumber Company leased machinery from Ivanhoe Corporation for an agreed - upon lease term of 3 years Cullumber agreed to make annual lease payments of $22, 000, beginning on December 31, 2024. The expected residual value of the machinery at the end of the lease term is $11,000. Your answer is incorrect. Cullumber guarantees a residual value of $11,000 at the end of the lease term. What if the expected residual value at the end the lease term is $8,000 and Cullumber guarantees a residual of $11,000 ? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places, e.g. 5, 275.) Click here to view factor tables. Lease liability $
(b)
* Your answer is incorrect.
Cullumber guarantees a residual value of $11,000 at the end of the lease term. What if the expected residual value at the end of
the lease term is $8,000 and Cullumber guarantees a residual of $11,000? (For calculation purposes, use 5 decimal places as displayed
in the factor table provided and round final answer to O decimal places, e.g. 5,275.)
Click here to view factor tables.
Lease liability
$
64238
expand button
Transcribed Image Text:(b) * Your answer is incorrect. Cullumber guarantees a residual value of $11,000 at the end of the lease term. What if the expected residual value at the end of the lease term is $8,000 and Cullumber guarantees a residual of $11,000? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places, e.g. 5,275.) Click here to view factor tables. Lease liability $ 64238
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