Question
In: Accounting
Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2018....
Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost of the computers was $19 million.
This non-cancelable lease had the following terms:
1.) Lease payments: 3,287,947 semiannually, first payment at January 1, 2018; remaining payments at June 30 and December 31 each year through June 30, 2022
2.) Lease term: 5 years (10 semi-annual payments)
3.) No residual value; no purchase option
4.) Economic Life of equipment: 5 years
5.) Implicit interest rate and lessee's incremental borrowing rate: 9% semiannually
6.) Fair Value of the computers at January 1, 2018: $23 million
What is the interest revenue that Technoid would report for this lease in its 2018 income statement?
Solutions
ekkarill92 answered 7 months agoRelated Solutions
Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2021....
Technoid Inc. sells computer systems. Technoid leases computers
to Lone Star Company on January 1, 2021. The manufacturing cost of
the computers was $18 million.
This noncancelable lease had the following terms:
Lease payments: $3,035,786 semiannually; first payment at
January 1, 2021; remaining payments at June 30 and December 31 each
year through June 30, 2025.
Lease term: 5 years (10 semiannual payments).
No residual value; no purchase option.
Economic life of equipment: 5 years.
Implicit interest rate and...
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software training firm, leased several computers under a two-year
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routinely finances equipment for other firms at an annual interest
rate of 4%. The contract calls for four rent payments of $14,500
each, payable semiannually on June 30 and December 31 each year.
The computers were acquired by ComputerWorld at a cost of $99,000
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On January 1, 2018, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under...
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software training firm, leased several computers under a two-year
operating lease agreement from ComputerWorld Leasing, which
routinely finances equipment for other firms at an annual interest
rate of 4%. The contract calls for four rent payments of $16,500
each, payable semiannually on June 30 and December 31 each year.
The computers were acquired by ComputerWorld at a cost of $103,000
and were expected to have a useful life of Five years...
On January 1, 2018, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under...
On January 1, 2018, Nath-Langstrom Services, Inc., a computer
software training firm, leased several computers under a two-year
operating lease agreement from ComputerWorld Leasing, which
routinely finances equipment for other firms at an annual interest
rate of 4%. The contract calls for four rent payments of $19,500
each, payable semiannually on June 30 and December 31 each year.
The computers were acquired by ComputerWorld at a cost of $109,000
and were expected to have a useful life of Five years...
On January 1, 2018, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under...
On January 1, 2018, Nath-Langstrom Services, Inc., a computer
software training firm, leased several computers under a two-year
operating lease agreement from ComputerWorld Leasing, which
routinely finances equipment for other firms at an annual interest
rate of 4%. The contract calls for four rent payments of $18,000
each, payable semiannually on June 30 and December 31 each year.
The computers were acquired by ComputerWorld at a cost of $106,000
and were expected to have a useful life of Five years...
On January 1, 2018, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under...
On January 1, 2018, Nath-Langstrom Services, Inc., a computer
software training firm, leased several computers under a two-year
operating lease agreement from ComputerWorld Leasing, which
routinely finances equipment for other firms at an annual interest
rate of 4%. The contract calls for four rent payments of $18,000
each, payable semiannually on June 30 and December 31 each year.
The computers were acquired by ComputerWorld at a cost of $106,000
and were expected to have a useful life of Five years...
On January 1, 2018, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under...
On January 1, 2018, Nath-Langstrom Services, Inc., a computer
software training firm, leased several computers under a two-year
operating lease agreement from ComputerWorld Leasing, which
routinely finances equipment for other firms at an annual interest
rate of 4%. The contract calls for four rent payments of $14,500
each, payable semiannually on June 30 and December 31 each year.
The computers were acquired by ComputerWorld at a cost of $99,000
and were expected to have a useful life of Five years...
On January 1, 2018, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under...
On January 1, 2018, Nath-Langstrom Services, Inc., a computer
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operating lease agreement from ComputerWorld Leasing, which
routinely finances equipment for other firms at an annual interest
rate of 4%. The contract calls for four rent payments of $14,500
each, payable semiannually on June 30 and December 31 each year.
The computers were acquired by ComputerWorld at a cost of $99,000
and were expected to have a useful life of Five years...
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