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
grin007 [14]
3 years ago
14

On January 1, Year 4, Jaffe Co. leased a machine to Pender Co. for 10 years, with $10,000 payments due at the beginning of each

year effective at the inception of the lease. The machine cost Jaffe $55,000. The lease is appropriately accounted for as a sales-type lease by Jaffe. The present value of the 10 rent payments over the lease term discounted appropriately at 10% was $67,600. The estimated residual value of the machine at the end of 10 years is equal to the disposal costs. How much interest revenue should Jaffe record from the lease for the year ended December 31, Year 4
Business
1 answer:
m_a_m_a [10]3 years ago
4 0

Answer:

$5,760

Explanation:

Calculation to determine How much interest revenue should Jaffe record from the lease for the year ended December 31, Year 4

First step is to calculate the carrying amount

carrying amount=$67,600-$10,000

carrying amount of $57,600

Now let calculate the interest revenue

Interest revenue =$57,600*10%

Interest revenue=$5,760

Therefore How much interest revenue should Jaffe record from the lease for the year ended December 31, Year 4 is $5,760

You might be interested in
Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is
VikaD [51]

Answer:

The straight line depreciation for the first year is $24000

Explanation:

The straight line method of depreciation charges/allocates a constant amount of depreciation through out the useful life of the asset. The straight line depreciation expense for the year is calculated as follows,

Straight line depreciation = (Cost - Salvage Value) / Estimated useful life

Straight line depreciation = (135000 - 15000) / 5  = $24000 per year

Thus, the amount of depreciation for first year under straight line method is $24000

7 0
3 years ago
Why do current and available balances sometimes show different amounts of money in the same account?.
mamaluj [8]

Answer: The available balance for your account may differ from the current balance because of pending transactions that have been presented against the account, but have not yet been processed.

Explanation:

6 0
2 years ago
All of the following are benefits of participating in a QRIS system except
castortr0y [4]
All of the following are benefits of participating in a QRIS system except (B) tax credits. QRIS or Quality Rating and Improvement System is a framework toward quality improvement and rating in building strong early care and education system. As early as childhood, this tool can help in the foundation of the children, especially in education.
8 0
4 years ago
Read 2 more answers
Giant company has two subsidiaries alpha and omega. both companies make identical computer printers information about the two su
madreJ [45]
We need the is as follows to know and answer the question sorry but can hellp unless the questions finished
5 0
3 years ago
Read 2 more answers
The movement of electricity is called: A. Amperage B. Current C. Voltage
ElenaW [278]
B. Current. Currents are the way electricity travels, voltage is how many volts of electricity is in the current and amperage is the strength of the current. 
6 0
3 years ago
Other questions:
  • A company sells merchandise to a customer for $6,000 with terms 2/10, n/30 on June 1. What amount of cash will the merchandiser
    6·1 answer
  • In 1950, residents in Liberia were wealthier than those in Taiwan. Today, per capita gross domestic product (GDP) in Taiwan is m
    14·2 answers
  • The XYZ car manufacturing company is advertising its new hybrid vehicle. It understands that its competition, Toyota's hybrid ca
    10·1 answer
  • The Giant Machinery has the current capital structure of 65% equity and 35% debt. Its net income in the current year is $250,000
    5·1 answer
  • Pearland, Inc. has 9,000 shares of preferred stock outstanding. The preferred stock has a $90 par value, a 14% dividend rate, an
    7·1 answer
  • When you get in a business, make a lot of money, and then get out, it’s referred to as a(n)
    6·2 answers
  • The nation of Pineland forbids international trade. In Pineland, you can buy 1 pound of fish for 2 pounds of pineapples. In othe
    6·1 answer
  • Alison incurs the following research expenditures. In-house wages $125,000 In-house supplies 12,500 Paid to ABC, Inc., for resea
    9·1 answer
  • Cvp analysis looks at how _ is affected by sales price per unit, variable costs per unit, volume, and fixed costs.
    10·1 answer
  • After preparing and posting the closing entries for revenues and expenses, the income summary account has a debit balance of $25
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!