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Irina18 [472]
3 years ago
6

On January 1, Year 1, Savor Corporation leased equipment to Spree Company. The lease term is 9 years. The first payment of $698,

000 was made on January 1, 2018. The present value of the lease payments is $4,561,300. The lease is appropriately classified as an operating lease. Assuming the interest rate for this lease is 9%, how much interest revenue will Savor record in Year 1 on this lease
Business
1 answer:
Lelu [443]3 years ago
8 0

Answer:

The interest revenue will Savor record in Year 1 on this lease at 9% is $347,697

Explanation:

Present value of Lease Payment = $4,561,300

Less: First Payment on Jan 1, 2018 = $698,000

Remaining Balance = $3,863,300

Interest Revenue for Year 1 at 9% = $3,863,300 × 9%

Interest Revenue for Year 1 at 9% = $347,697

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Answer:

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Explanation:

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3 years ago
When interest is accrued on a note payable, but not paid, the A. Interest Expense account is increased; the Interest Payable acc
olchik [2.2K]

Answer:

C. Interest Expense account is increased; the Interest Payable account is increased.

Explanation:

A secured interest can be defined as a legal right granted by a borrower to a lender (creditor) over a collateral (the borrower's property) which permits or allow the lender to have a right to possess the property as soon as the lender defaults in making payment. The payment which is expected to be made by the borrower of a mortgage loan is considered a secured obligation because it is a lien or an enforceable legal claim.

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3 years ago
Relationship between risk and return
Svetlanka [38]

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3 years ago
Long Beach, Inc., a lessor, charges Applewood Corp., a lessee, a $10,500 nonrefundable fee to enter into a five-year operating l
N76 [4]

Answer:

Rent expense= $30,900

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What advantage is there for a company to offer products at prices below actual market value? Multiple choice question. It maximi
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