Rey 0.33Werner Chemical, Inc., leased a protein analyzer on September 30, 2021. The five-year lease agreement calls for Werner to makequarterly lease payments of $424,178, payable each September 30, December 31, March 31, and June 30, with the first payment atSeptember 30, 2021. Werner's incremental borrowing rate is 16%. Amortization is recorded on a straight-line basis at the end of eachfiscal year. The useful life of the equipment is five years. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Useappropriate factor(s) from the tables provided.)Required:1. Determine the present value of the lease payments at September 30, 2021.2. What pretax amounts related to the lease would Werner report in its balance sheet at December 31, 2021?3. What pretax amounts related to the lease would Werner report in its income statement for the year ended December 31, 2021?4. What pretax amounts related to the lease would Werner report in its statement of cash flows for the year ended December 31, 2021?Complete this question by entering your answers in the tabs below.Req 1 to 3Determine the present value of the lease payments at September 30, 2021.What pretax amounts related to the lease would Werner report in its balance sheet at December 31, 20217What pretax amounts related to the lease would Werner report in its income statement for the year ended December 31,20217(Round your intermediate and final answers to nearest whole dollar)1.2Req 43Present value of lease payments at Sept 30, 2021Balance of lease liability at Dec 31, 2021Balance of right-of-use asset at Dec 31, 2021Total expenses related to lease for the year ended Dec 31, 2021Req 4 >Show less A

Quarterly Lease payment = $424,178 Borrowing rate = 16% Lease period = 5 yearsThe present value of…

Answered: Werner Chemical, Inc., leased a protein…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $604,355 over a five-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 10%, the same rate IC uses to calculate lease payment amounts. Amortization is recorded on a straight-line basis at the end of each fiscal year. The fair value of the equipment is $4.9 million. (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.) Required: 1. Determine the present value of the lease payments at June 30, 2021 that Georgia-Atlantic uses to record the right-of-use asset and lease liability. 2. What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2021? 3. What pretax amounts related to the lease would…
On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $576,798 over a five-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 12%, the same rate IC uses to calculate lease payment amounts. Amortization is recorded on a straight-line basis at the end of each fiscal year. The fair value of the equipment is $4.5 million. (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.) Required:1. Determine the present value of the lease payments at June 30, 2021 that Georgia-Atlantic uses to record the right-of-use asset and lease liability.2. What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2021?3. What pretax amounts related to the lease would…
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Abbott Equipment leased a protein analyzer to Werner Chemical, Incorporated, on September 30, 2024. Abbott purchased the machine from NutraLabs, Incorporated, at a cost of $5.95 million. The five-year lease agreement calls for Werner to make quarterly lease payments of $420,972, payable each September 30, December 31, March 31, and June 30, with the first payment on September 30, 2024. Abbott's implicit interest rate is 16%. The useful life of the equipment is five years. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: What pretax amounts related to the lease would Abbott report in its balance sheet on December 31, 2024? What pretax amounts related to the lease would Abbott report in its income statement for the year ended December 31, 2024? What pretax amounts related to the lease would Abbott report in its statement of cash flows for the year ended December 31, 2024?

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