Question
In: Accounting
Tamarisk Corporation recorded a right-of-use asset for $259,700 as a result of a finance lease on...
Tamarisk Corporation recorded a right-of-use asset for $259,700
as a result of a finance lease on December 31, 2019. Tamarisk’s
incremental borrowing rate is 11%, and the implicit rate of the
lessor was not known at the commencement of the lease. Tamarisk
made the first lease payment of $49,651 on on December 31, 2019.
The lease requires 7 annual payments. The equipment has a useful
life of 7 years with no residual value.
Prepare Tamarisk's December 31, 2020, entries. (Credit
account titles are automatically indented when amount is entered.
Do not indent manually. Round answers to 0 decimal places e.g.
5,275.)
Solutions
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ekkarill92 answered 2 years agoRelated Solutions
Windsor Corporation recorded a right-of-use asset for $240,300 as a result of a finance lease on...
Windsor Corporation recorded a right-of-use asset for $240,300
as a result of a finance lease on December 31, 2016. Windsor’s
incremental borrowing rate is 13%, and the implicit rate of the
lessor was not known at the commencement of the lease. Windsor made
the first lease payment of $41,440 on on December 31, 2016. The
lease requires 9 annual payments. The equipment has a useful life
of 9 years with no residual value.
Prepare Wndor's December 31,2017, entries.
The Hardaway Corporation plans to lease a $880,000 asset to the O’Neil Corporation. The lease will...
The Hardaway Corporation plans to lease a $880,000 asset to the
O’Neil Corporation. The lease will be for 11 years. Use Appendix D
for an approximate answer but calculate your final answer using the
formula and financial calculator methods. a. If the Hardaway
Corporation desires a return of 10 percent on its investment, how
much should the lease payments be? (Do not round intermediate
calculations and round your answer to 2 decimal places.) b. If the
Hardaway Corporation is able...
The Hegan Corporation plans to lease a $830,000 asset to the Doby Corporation. The lease will...
The Hegan Corporation plans to lease a $830,000 asset to the
Doby Corporation. The lease will be for 15 years. Lease payments,
payable at the beginning of the year. (Use a Financial
calculator to arrive at the answers. Round the final answers to
nearest whole dollar.)
a. If the Hegan Corporation desires a 11
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payments be?
Lease payment
$
b. If the Hegan Corporation is able to generate...
The Hegan Corporation plans to lease a $890,000 asset to the Doby Corporation. The lease will...
The Hegan Corporation plans to lease a $890,000 asset to the
Doby Corporation. The lease will be for 15 years. Lease payments,
payable at the beginning of the year. (Use a Financial calculator
to arrive at the answers. Round the final answers to nearest whole
dollar.)
a. If the Hegan Corporation desires a 11
percent return on its investment, how much should the lease
payments be?
Lease payment
$
b. If the Hegan Corporation is able to generate...
The Hegan Corporation plans to lease a $830,000 asset to the Doby Corporation. The lease will...
The Hegan Corporation plans to lease a $830,000 asset to the
Doby Corporation. The lease will be for 15 years. Lease payments,
payable at the beginning of the year. (Use a Financial calculator
to arrive at the answers. Round the final answers to nearest whole
dollar.)
a. If the Hegan Corporation desires a 11 percent return on its
investment, how much should the lease payments be?
Lease payment $
b. If the Hegan Corporation is able to generate $125,000 in...
Sheffield Leasing Company agrees to lease machinery to Tamarisk Corporation on January 1, 2017. The following...
Sheffield Leasing Company agrees to lease machinery to Tamarisk
Corporation on January 1, 2017. The following information relates
to the lease agreement.
1. The term of the lease is 7 years with no renewal option, and
the machinery has an estimated economic life of 9 years.
2. The cost of the machinery is $483,000, and the fair value of
the asset on January 1, 2017, is $757,000.
3. At the end of the lease term, the asset reverts to the...
Sheffield Leasing Company agrees to lease equipment to Tamarisk Corporation on January 1, 2020. The following...
Sheffield Leasing Company agrees to lease equipment to Tamarisk
Corporation on January 1, 2020. The following information relates
to the lease agreement.
1.
The term of the lease is 7 years
with no renewal option, and the machinery has an estimated economic
life of 9 years.
2.
The cost of the machinery is
$483,000, and the fair value of the asset on January 1, 2020, is
$757,000.
3.
At the end of the lease term, the
asset reverts to the...
Tamarisk Dairy leases its milking equipment from Vaughn Finance Company under the following lease terms. 1.The...
Tamarisk Dairy leases its milking equipment from Vaughn Finance
Company under the following lease terms.
1.The lease term is 10 years, noncancelable, and requires equal
rental payments of $27,900 due at the beginning of each year
starting January 1, 2020.
2.The equipment has a fair value at the commencement of the
lease (January 1, 2020) of $211,081 and a cost of $263,000 on
Vaughn Finance's books. It also has an estimated economic life of
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In a lease that is recorded as a sales-type lease by the lessor, interest revenue Select...
In a lease that is recorded as a sales-type lease by the lessor,
interest revenue
Select one:
a. Does not arise.
b. Should be recognized over the life of the lease by the effective
interest method.
c. Should be recognized over the life of the lease by the
straight-line method.
d. Should be recognized in full as revenue at the lease's
inception.
Discuss whether an asset needs to be legally owned to be recorded as an asset on...
Discuss whether an asset needs to be legally owned to be
recorded as an asset on the balance sheet (No less than 500
words).
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