Assume that on December 31, 2019, Simsight Corp. signs an 8-year, non-cancelable lease agreement to lease a machine from Nico Company. The following information pertains to this lease agreement: 1. The agreement requires equal rental payments of $57,464 beginning on December 31, 2019. 2. The fair value of the building on December 31, 2019, is $420,141. 3. The building has an estimated economic life of 10 years, a guaranteed residual value of $8,000, and an expected residual value of $5,600. Simsight depreciates similar machines on the straight-line method. 4. The lease is nonrenewable. At the termination of the lease, the machine reverts to the lessor. 5. Simsight's incremental borrowing rate is 8% per year. The lessor's implicit rate is not known by Simsight. Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2019, 2020, and 2021. Simsight's fiscal year-end is December 31.
Answers: 1
Other questions on the subject: Business
Business, 22.06.2019 12:50, laxraAragon
Jallouk corporation has two different bonds currently outstanding. bond m has a face value of $50,000 and matures in 20 years. the bond makes no payments for the first six years, then pays $2,100 every six months over the subsequent eight years, and finally pays $2,400 every six months over the last six years. bond n also has a face value of $50,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. the required return on both these bonds is 10 percent compounded semiannually. what is the current price of bond m and bond n?
Answers: 3
Business, 23.06.2019 00:00, laylaaaaah2054
3. which of the following occupations relate to a skill category of mathematics and data? select all that apply. (2 correct answers) engineer financial analyst mechanic sales person 4. which of the following occupations relate to a skill category of words and literacy? select all that apply. (2 correct answers) educator lawyer marketing manager psychologist architect
Answers: 1
Business, 23.06.2019 03:10, yyy77uh
Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. statement consumer surplus producer surplus neither a local store was having a sale on textbooks, so i bought a used textbook for my brother. i sold a watch for $61, even though i was willing to go as low as $55 in order to sell it. even though i was willing to pay up to $116 for a used laptop, i bought a used laptop for only $110.
Answers: 1
Business, 23.06.2019 12:00, kaylallangari1509
What could increase the value of your property
Answers: 1
You know the right answer?
Assume that on December 31, 2019, Simsight Corp. signs an 8-year, non-cancelable lease agreement to...
Questions in other subjects:
Chemistry, 18.03.2021 21:00
