Using the following information, what is the cost to lease a car? (Assume there are no charges for damage at the end of the lease.) Security deposit Monthly lease payment Opportunity cost of security deposit End-of-lease charges $360 $360 per month for a five-year lease $360 x loan period (in years) x 2% interest $560 Multiple Choice О $22,196. $22,756. $22,556. О $22,232. О $21,600.
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- Using the following information, what is the cost to lease a car? (Assume there are no charges for damage at the end of the lease.) Security deposit Monthly lease payment Opportunity cost of security deposit End-of-lease charges $300 $300 per month for a five-year lease 300 x loan period (in years) × 2% interest 500 Multiple Choice $18,000 $18,530 $18,560 $18,830A lessee has developed the following information regarding a lease contract, with payments due at the beginning of the period. Use this information to determine the amount at which the lease obligation will initially be recorded. Description Amount Present value Present value of total of annuity due amount Annual lease $4,500 S16.528 S14,258 payment Discount rate 6% Number of periods 4 Purchase option $300 S238 Group of answer choices: 18,000 14,495 16,528 14,258 18,300 16,766What type of lease is this to Ravis Rent-A-Car Company? 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.
- Automobile leases are built around three factors: negotiated sales price, residual value, and interest rate. The residual value is what the dealership expects the car’s value will be when the vehicle is returned at the end of the lease period. The monthly cost of the lease is the capital recovery amount determined by using these three factors. Solve, (a) Determine the monthly lease payment for a car that has an agreed-upon sales price of $34,995, an APR of 9% compounded monthly, and an estimated residual value of $20,000 at the end of a 36-month lease.∗ An up-front paymentof $3,000 is due when the lease agreement (contract) is signed. (b) If the estimated residual value is raised to $25,000 by the dealership to get yourbusiness, how much will the monthly payment be?Use the following data: Purchase Costs Down payment: $4,800. Loan payment: $340 for 48 months Estimated value at end of loan: $5,100 Opportunity cost interest rate: 2 percent per year Calculate the costs of buying versus leasing a motor vehicle. Cost of buying Cost of leasing Leasing Costs Security deposit: $1,600 Lease payment: $340 for 48 months End-of-Lease charges: $7653. the information below relates to a sales type lease in which lease payments are made semiannually at the beginning of each period Lease term Lessor's desired rate of return Lesse's incremental borrowing rate Current fair market value of leased asset 5 years 12% per year 10% per year $600,000 Based on the information above, calculate the amount of the semi-annual payment as determined by the lessor.
- Use the following information about a net lease to answer this question. Measurement Base rent Operating expenses Taxes Cost of tenant improvements 7,500 rentable square feet $12 per square foot annually $22,500 per year $15,000 per year $20,000 Parking Cost of old lease buyout Moving costs Tenant-improvement allowance $2,000 per month (fixed over the life of the lease) $20,000 $10,000 $2 per square footInformation on a lease is as follows: Cost of equipment - P303,735 Useful life of equipment - 5 years Lease term - 4 years Annual rent payable at the end of each year - P100,000 The lessor is not a dealer or manufacturer of equipment. What is the interest rate implicit in the lease?given the information below, what type of lease is this for the lessee? Lease term (years) 6 Remaining economic life (years) 10 Present value of lease payment $176,000 Fair value leased asset $200,000 Residual value (unguaranteed) $14,000 Bargain purchase option No Ownership transfer at end of lease. No a. sales-type lease b. short term lease c. operating lease d. finance lease
- Use the following Annuity Table for questions. Future Value of Ordinary Annuity of 1 Present Value of an Ordinary Annuity of 1 On January 1, 2015, Yancey, Inc. signs a 10-year noncancelable lease agreement to lease a storage building from Holt Warehouse Company. Collectibility of lease payments is reasonably predictable and no important uncertainties surround the amount of costs yet to be incurred by the lessor. The following information pertains to this lease agreement. (a) The agreement requires equal rental payments at the beginning each year. (b) The fair value of the building on January 1, 2015 is $3,000,000; the book value to Holt is also $3,000,000. (c) The building has an estimated economic life of 10 years, with no residual value Yancey depreciates similar buildings on the straight-line method. (d) At the termination of the lease, the title to the building will be transferred to the lessee. (e) Yancey's incremental borrowing rate is 11% per year. Holt Warehouse…The details of the equipment lease agreement that Taj Corp. (lessee) recently entered into with Stanger Leasing (lessor) are: Commencement date: January 1, 2019. ■ Term of lease: 12 months. Payments: $1,000 per month first due at the commencement date. Other: Title does not transfer and the lease does not include any renewal or purchase options. Interest rate implicit in the lease: Lessee not able to readily determine. Incremental borrowing rate: 9% per annum (0.75% per month). Estimated useful life of equipment: 8 years. Depreciation method: Straight-line. Year end: December 31. Assume that Taj Corp. does not elect to expense leases of a short-term nature. Prepare the journal entry for January 31, 2019.A tenant has a gross lease with an ‘‘expense stop’’of $2.75/SF. If the building has 200,000 square feet of leasable space, reimbursable operating expenses of $700,000, and the tenant rents 25,000 SF, then how much does the tenant owe the landlord in expense reimbursements (the total $ amount)? Question options: $3.50/SF. $25,000. $58,750. $18,750