1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
drek231 [11]
2 years ago
14

On December 31, 2021, Wildhorse, Inc. leased machinery with a fair value of $1,425,000 from Cey Rentals Co. The agreement is a 6

-year noncancelable lease requiring annual payments of $270,000 beginning December 31, 2021. The lease is appropriately accounted for by Wildhorse as a finance lease. Wildhorse’s incremental borrowing rate is 11%. Wildhorse knows the interest rate implicit in the lease payments is 10%. The present value of an annuity due of 1 for 6 years at 10% is 4.7908. The present value of an annuity due of 1 for 6 years at 11% is 4.69590.In its December 31, 2021 balance sheet, Wildhorse should report a lease liability of:_______
Business
1 answer:
Contact [7]2 years ago
5 0

Answer:

$1,023,516

Explanation:

The computation of the lease liability reported is shown below:

= Present value of annual payment - Annual payments

where,

Present value of annual payment = 270000 × 4.7908

= $1,293,516

And, the annual payment is $270,000

So, the lease liability reported is

= $1,293,516 - $270,000

= $1,023,516

We simply applied the above formula to determine the lease liability

You might be interested in
An organization expresses its reason for being, what it aspires to be, and the values it wants to emphasize in its mission, visi
Tomtit [17]

Answer:

1. Describes the image the organization wants to project

Statement: Mission Statement

2. Inspires enthusiasm and encourages commitment

Statement: Vision Statement

3. Illuminates the organization’s attitude toward its employees

Statement: Mission Statement

4. Is intended to guide all of the actions in the organization

Statement: Values Statement

5. Is easily understood and well-articulated

Statement: Vision Statement

6. Outlines the organization’s customer base

Statement: Mission Statement

7. Expresses the company’s worldview

Statement: Values Statement

8. Is appropriate for the times and for the organization

Statement: Vision Statement

9. Limits itself to a small number that employees can recall when making decisions

Statement: Values Statement

10. Articulates the geographical locations where the company competes

Statement: Mission Statement

11. Unchanging; As applicable in 100 years as it is today

Statement: Values Statement

12. Reflects high ideals

Statement: Vision Statement  

8 0
3 years ago
A person who holds him- or herself out as a specialist or knowledgeable in a certain type of business is one type of
ruslelena [56]

Answer:

Merchant

Explanation:

4 0
3 years ago
(C____________ ) among buyers and sellers prohibits a single buyer or seller can dictate the price of a product or resource beca
Sergeu [11.5K]

Answer:

(Competion____________ ) among buyers and sellers prohibits a single buyer or seller can dictate the price of a product or resource because others can undercut that price. The regulatory mechanism of the market system is ( competition___________ ). As the result, the ( _economic_________ ___power_____ ) is widely distributed. In other words, competition diffuses ( __economic________ ___power______ ) and limits the actions of any single seller or buyer.

Explanation:

Economic power refers to the ability of countries, businesses, or individuals to improve their standard of living, making decisions that benefit themselves alone, and reducing the ability of any outside force to reduce their freedom.  Competition refers to the selling and buying of goods and services with others, who are also selling and buying the same goods and services.  It balances economic power, preventing a single individual from monopolizing the market interaction.

6 0
3 years ago
good management can lead to the success of a business entity with the aid of a field research analyse the viability of the funct
serious [3.7K]
True. Good management can lead to the success of a business entity with the aid of a field research analyst and the viability of the functions of management. Having good management directly relates to having a smooth running operation. The management team makes sure their individual groups are operating how they should and working efficiently for the overall goals to be met.  
8 0
3 years ago
Intangible Assets and Goodwill: Amortization and Impairment In early 2011, Bowen Company acquired a new business unit in a merge
lianna [129]
I thinks the answer is 400,000 jp I jags need more answers
6 0
3 years ago
Other questions:
  • Job Performance = Motivation x Ability x Situational Constraints
    13·1 answer
  • What drivers for unethical behavior are evident in reviewing the actions of Bernard Madoff and the managers of the Stanford Fina
    7·1 answer
  • On September 1, 2021, Middleton Corp. lends cash and accepts a $4,000 note receivable that offers 10% interest and is due in six
    14·2 answers
  • The cost of beginning work in process inventory plus the costs added to production during the period equals the _______. cost of
    9·1 answer
  • Which one of the following is a false statement regarding NYSE specialists? On a stock exchange most buy or sell orders are exec
    7·1 answer
  • What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet? Do you believe Blai
    15·1 answer
  • 13. You just won a prize that comes with two payout choices. The first option is to get $100,000 right now and nothing hereafter
    14·1 answer
  • Fast fine foods markets some of its products to consumers looking for simple quick meals. Fast find foots also offer another lin
    14·1 answer
  • Timing Technology, Inc. manufactures timing devices. During 20x1, 1,500,000 units were completed and transferred to finished-goo
    14·1 answer
  • Which type of managers of a business must answer to a board of directors regarding the company's fiscal performance?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!