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Anastasy [175]
3 years ago
13

On January 1, 2012, Porter Corporation signed a five-year noncancelable lease for certain machinery. The terms of the lease call

ed for:
1. price to make annual payments of $60,000 at the end of each year (starting on December 31, 2012) for five years. Porter must return the equipment to the lessor end of this period.
2. the machinery has an estimated useful life of 6 years and no expected salvage value.
3. Porter uses the straight-line method of depreciation for all of its fixed assets.
4. Porter's incremental borrowing rate is 8%. 5. the fair value of the asset at January 1, 2012, is $275,000.

At January 1, 2012, Porter should record an asset and liability with respect to the equipment lease equal to ________.
Business
1 answer:
SashulF [63]3 years ago
7 0

Answer:

$275,000

Explanation:

The <em>lease liability</em> is recorded at the Present Value amount of the lease payments based on the incremental borrowing rate.

The <em>lease asset</em> is recorded at the same amount of lease liability including other costs of placing the assets in location and condition intended for use by management.

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RoseWind [281]

Answer:

Copyright is a form of protection grounded in the U.S. Constitution and granted by law for original works of authorship fixed in a tangible medium of expression. Copyright covers both published and unpublished works.

Explanation:

i looked it up

4 0
3 years ago
Helmert Federal, a financial institution, acquires its funds primarily from the deposits of its customers, and then uses these f
Viefleur [7K]

Answer:

Savings and loan association

Explanation:

Since, Helmert Federal, acquires its funds primarily from the deposits of its customers, and then uses these funds to make mortgage loans for individuals interested in purchasing real estate properties.Therefore we can say that

Helmert Federal is a Savings and loan association

8 0
2 years ago
A parcel of real estate has been left to a woman through her husband's will for her use and enjoyment during her lifetime, with
wolverine [178]

Answer: A) Remainderman

Explanation:

A Remainderman may sound like something from a horror movie but it is a property law term that refers to a person that is billed to take over or inherit an estate after the LIFE ESTATE of the previous owner is terminated.

Life Estate is an agreement where a person owns a property or asset for the duration of their life but as soon as they pass on, the asset or property reverts back to the original owner of a THIRD party.

The Remainderman is the person who the property reverts to.

In the above scenario therefore, the woman is in possession of a Life Estate but the Stepson is the Remainderman.

7 0
3 years ago
During 2018, businesses may elect to immediately expense up to $__________ of qualified real property placed in service that yea
alex41 [277]

Answer:

$1 million

Explanation:

Section 179 deduction of the IRS code was enacted to help small business owners take depreciation deductions for certain assets ( capital expenditure I.e. the money spent on acquiring and maintaining fixed assets such as buildings and equipments ) in one year rather than continuous depreciation over a long period of time.

The new law increased the maximum deduction from $500,000 to $1 million.

For example: lets say you buy a computer for your office, under section 179 you can deduct the full cost of your computer in one year. This a very okay because the life span of your computer is short

5 0
3 years ago
When making a payment of FUTA taxes, the employer must make the payment by the: a.10th of the month after the quarter. b.end of
Murljashka [212]

Answer:

Correct option is D.

<u>End of the month after the quarter.</u>

Explanation:

FUTA taxes must be paid quarterly by the last day of the month following the end of the calendar quarter.

  • April 30th
  • July 31st
  • October 31st
  • January 31st
5 0
2 years ago
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