If you are in a car accident cause by someone else who also has insurance, which type of insurance plan will not require you to
1 answer:
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Answer:
The 16,700 are the PMT of an annuity-due considering the fair value of 126,890
lease receivable 126,890 debit
Equipment 126,890 credit
--lease to Manufacturers Southern--
cash 16,700 debit
lease receivable 16,700 credit
--first lease payment--
cash 16,700 debit
interest revenues 6,611.4 credit
lease receivable 10,088.6 credit
--second lease payment--
Explanation:
The 16,700 are the PMT of an annuity-due considering the fair value of 126,890
PV $ 126,890
time: 8 quarters
rate: 0.015 (6% annual over 4 quarter per year)
C $ 16,699.977
<u>The first payment as s done right away,</u> has no interest and decreases entirely the lease receivable
<u>The second payment will accrue interest:</u>
carrying value x 6% interest expense =
(126,890 - 16,700) x 6% = 6,611.4
<u>Amortization on lease receivable: </u>16,700 - 6,611.4 = 10,088.6