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2 years ago

True or false: the residual value of a leased asset always impacts the lessee's accounting.

Business

1 answer:

diamong [38]2 years ago

6 0

False, the residual value of a leased asset not always impacts the lessee's accounting.

What is the residual value of the leased assets?

The estimated value of a fixed asset after its useful life or lease term is known as the residual value, sometimes known as salvage value. In lease agreements, one of the lessor's main methodologies for figuring out how much the lessee must pay in periodic lease payments is the residual value.

How does residual value affect a lease?

Your monthly payment is affected by the residual value (a higher residual value means a higher monthly payment, compared to a lower residual value for the same vehicles MSRP). Every month and every year, the residual value is different. All leased cars depreciate over time.

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On January 1, 2017, Hi and Lois Company purchased 12% bonds, having a maturity value of $300,000, for $322,744.44. The bonds pro

deff fn [24]

Answer:

Consider the following calculations

Explanation:

a) By Investement in bonds(AFS) Dr $322,744.44

To Cash $322,744.44

b) 1. By Cash Dr $36,000 ($300,000*12%)

To Interest $32,274.44 ( $322,744.44*10%)

To Investment in bonds(AFS) $3,725.56 (Balancing fig.)

2) By Investment In Bonds (AFS) $1,481.12 {$320,500 - ($322,744.44 -$3,725.56)}

To Unrealised profit on Investment(AFS) Dr $1,481.12

(Amortization of premium in 2014 - $36,000 - ($322,744.44-$3,725.56)*10% = $4,100

c) By Unrealized loss on investment (AFS) Dr $7,400 ( $320,500 - $4100 - $309,000)

To Investment in bonds(AFS) $7,400

5 0

3 years ago

XYZ Development has just purchased a large tract of land that it plans to develop into 50 one-acre building lots. To have the ab

m_a_m_a [10]

To have the ability to sell off individual lots before paying off the entire balance due, the developer will need to obtain a blanket mortgage.

<h3>What is a blanket mortgage?</h3>

A blanket mortgage is a single mortgage that covers many properties and serves as security for the loan.
Real estate developers and larger investors frequently purchase multiple properties at once, thus a blanket mortgage allows them to consolidate such deals into a single loan.
Consider the money you'd save on closing fees, both for the original mortgage and any subsequent refinances.
Refinancing from numerous loans to a single blanket mortgage may also result in lower monthly payments, which may increase your cash flow.

Therefore, to have the ability to sell off individual lots before paying off the entire balance due, the developer will need to obtain a blanket mortgage.

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6 0

2 years ago

g The Esposito Import Company had 1 million shares of common stock outstanding during 2021. Its income statement reported the fo

asambeis [7]

Answer:

$5.00

Explanation:

Preparation of the 2021 EPS presentation for the Esposito Import Company

Earnings per share:

Income from continuing operations$7.00

Less Loss from discontinued operations(2.0)

Net income $5.00

Therefore the Net income after the Preparation of the 2021 EPS presentation for the Esposito Import Company is $5.00

6 0

4 years ago

Consider the following income statement for Kroger Inc. (all figures in $ Millions):

Darina [25.2K]

Answer:

D) $179 million

Explanation:

The computation of the interest tax shield for the year 2006 is shown below:

= Interest expense in the year 2006 × tax rate

= $510 million × 35%

= $178.50 million

Simply we multiply the interest expense with the tax rate for the particular year so that the correct amount can come

All other information which is given is not relevant. Hence, ignored it

7 0

3 years ago

Do It! Review 9-1 Pharoah Company purchased a delivery truck. The total cash payment was $43,222, including the following items.

MrRa [10]

Answer:

$39,892

Explanation:

The computation of the cost of the truck is shown below:

= Negotiated purchase price of the delivery truck + Installation cost of special shelving + Painting and lettering cost + Sales tax

= $34,200 + $2,810 + $830 + $2,052

= $39,892

The motor vehicle license and the annual insurance policy is an annual cost expense which is not considered for computing the cost of the delivery truck. Hence, ignored it

3 0

3 years ago