Exercise 21-16

Presented below are four independent situations. (Round answers to 0 decimal places, e.g. 125. If answer is 0, please enter 0. Do not leave any fields blank.) (a) On December 31, 2017, Sarasota Inc. sold computer equipment to Daniell Co. and immediately leased it back for 10 years. The sales price of the equipment was $524,700, its carrying amount is $399,200, and its estimated remaining economic life is 12 years. Determine the amount of deferred revenue to be reported from the sale of the computer equipment on December 31, 2017. The amount of deferred revenue to be reported $ (b) On December 31, 2017, Ivanhoe Co. sold a machine to Cross Co. and simultaneously leased it back for one year. The sales price of the machine was $481,400, the carrying amount is $419,800, and it had an estimated remaining useful life of 14 years. The present value of the rental payments for the one year is $35,200. At December 31, 2017, how much should Ivanhoe report as deferred revenue from the sale of the machine? The amount of deferred revenue to be reported $ (c) On January 1, 2017, Shamrock Corp. sold an airplane with an estimated useful life of 10 years. At the same time, Shamrock leased back the plane for 10 years. The sales price of the airplane was $497,200, the carrying amount $378,400, and the annual rental $74,552. Shamrock Corp. intends to depreciate the leased asset using the sum-of-the-years-digits depreciation method. How much gain on the sale should be reported at the end of 2017 in the financial statements? The gain on the sale should be reported $ (d) On January 1, 2017, Bridgeport Co. sold equipment with an estimated useful life of 5 years. At the same time, Bridgeport leased back the equipment for 2 years under a lease classified as an operating lease. The sales price (fair value) of the equipment was $210,700, the carrying amount is $297,600, the monthly rental under the lease is $6,000, and the present value of the rental payments is $114,957. For the year ended December 31, 2017, determine which items would be reported on its income statement for the sale-leaseback transaction

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Exercise 21-16 Presented below are four independent situations. (Round answers to 0 decimal places, e.g. 125. If answer is 0, please enter 0. Do not leave any fields blank.) (a) On December 31, 2017, Sarasota Inc. sold computer equipment to Danicll Co. and immediately leased it back for 10 years. The sales price of thc equipment was $524,700, its carrying amount is $399,200, and its estimated remaining economic life is 12 years Determine the amaunt af daferred reanue to be raparted from the sale of the computer aquipment on Dacamber 31, 20D1? The amount of deferred revenue to be reported was $481,400, the arry ng amount is $419 800, and it had an estimated emaining use life of 14 Years. The present value (b On December 31 2017 Ivan e Co sol a machine to Cross Co. end simultaneously eesed it back ?one year. The sales price o he machine af the rental payments for the one year is $35,200.At Decmber 31, 2017, haw much should Ivanhoe report as deferred revenue from the sale af the machine? The amount of deferred revenue to be reported (e) On January 1, 2017, Shamrock Corp. sod an airplane with an estimated useful life or 10 years. At the same time, Shamrock leased back the plane for 10 years. The sales price of the airplane was $497,200, the carrying amount $378,400, and the annual rental $74,552 Shamrock Corp. intends to depreciate the leased asset using the sum-of-the-years-digits depreciation method. How much gain on the sale should be reported at the end of 2017 in the financial statements? The gain on the sale should be reported d) ?n )anuar 201 7 Bridgeport Co sold ?quipment with an estimated useful re o 5 years. At the samc time, Bridgeport eased back the e ui ment or 2 years under a eas classned as an erating ease. The sales price fair value at the quipment as $210 70 the camying amount is $297,600, the monthly rental under the lease is $6,000, and the present value of the rental payments is $114,957, For the year ended December 31, 2017, determine which items would be reported on its income statement for the sale-leaseback transacton. f rntal ayments is $11