Lessee enters into a three-year lease of equipment and concludes that the agreement is a finance lease because the lease term is for a major part of the remaining economic life of the underlying asset (also three years). In addition, Lessee pays initial direct costs of $3,000. Also, assume that Lessee has guaranteed the residual value of the equipment at the end of the lease term, has concluded that it is probable that Lessee will owe $6,000 to Lessor as a result of that residual value guarantee. The arrangement provides the following:

• Complete the following schedule to show the impact on the income statement and balance sheet.

• Prepare the journal entries at the time of the lease commencement and for Year 1 of the lease term.

Lessee enters into a three-year lease for retail space and concludes that the agreement is an operating lease. Lessee pays initial direct costs of $3,000.  The agreement provides the following:

• Complete the following schedule to show the impact on the income statement and balance sheet.

Prepare the journal entries at the time of the lease commencement and for Year 1 of the lease term.

What is the present value of a perpetuity of $80 per year if the discount rate is 11%?

A company is planning on increasing its annual dividend by 7.50% a year for the next three years and then settling down to a constant growth rate of 2.50% per year in perpetuity. The company just paid its annual dividend in the amount of $0.80 per share. What is the current stock price if the required rate of return is 17.50%?

Determine the amount of the standard deduction for each of the following taxpayers for tax year 2019:

1. Christina, who is single.
2. Adrian and Carol, who are filing a joint return. Their son is blind.
3. Peter and Elizabeth, who are married and file separate tax returns. Elizabeth will itemize her deductions.
4. Karen, who earned $1,100 working a part-time job. She can be claimed as a dependent by her parents.
5. Rodolfo, who is over 65 and is single.
6. Bernard, who is a nonresident alien with U.S. income.
7. Manuel, who is 70, and Esther, who is 63 and blind, will file a joint return.
8. Herman, who is 75 and a qualifying widower with a dependent child.

Sydney will fund a scholarship that will provide payments of $25,000 per year in perpetuity, with the first scholarship payment to be paid 20 years from today. She is considering two options:

Option A: Pay $22,974,73 at the beginning of each year for the next 20 years.

Option B: Pay $K per year at the end of the year for the next 5 years.

The effective annual interest rate is constant and the present value of option A is equal to the present value of option B.

Calculate K.

Find the present value of the given perpetuity. ​

$43200 per year at the rate of 6​% yearly

A company is planning on increasing its annual dividend by 8.75% a year for the next three years and then settling down to a constant growth rate of 3.75% per year in perpetuity. The company just paid its annual dividend in the amount of $1.05 per share. What is the current stock price if the required rate of return is 18.75%?
Question 8 options: $7.82
$8.02
$8.23
$8.43
$8.64