{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T08:05:59-04:00", "answer_date": "2024-05-26 08:05:59", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1728696", "url": "\/study-help\/questions\/financial-statement-reporting-for-a-finance-lease-reynolds-construction-rc-1728696", "question_creation_date_js": "2024-05-26T08:05:59-04:00", "question_creation_date": "May 26, 2024 08:05 AM", "meta_title": "[Solved] Financial Statement Reporting for a Finan | SolutionInn", "meta_description": "Answer of - Financial Statement Reporting for a Finance Lease Reynolds Construction (RC) needs a piece of equipment that costs $90 | SolutionInn", "meta_keywords": "financial,statement,reporting,finance,lease,reynolds,construction,rc,piece,equipment,costs,$90,000", "question_title_h1": " Financial Statement Reporting for a Finance Lease Reynolds Construction (RC) needs a piece of equipment that costs $90,000. The equipment has an economic life", "question_title": " Financial Statement Reporting for a Finance Lease Reynolds Construction (RC) needs", "question_title_for_js_snippet": "Financial Statement Reporting for a Finance Lease Reynolds Construction (RC) needs a piece of equipment that costs $90,000 The equipment has an economic life of 2 years and no residual value The equipment will not require maintenance because its useful life is so short RC can borrow the full cost of the equipment at an interest rate of 10 with payments due at the end of the year Alternatively, RC can lease the equipment for $50,000 with payments due at the end of the year Assume RC chooses the lease, which is a finance lease for financial reporting purposes Answer the following questions (Hint See Table 19 1 ) a What is the initial lease liability that must be reported on the balance sheet Do not round intermediate calculations Round your answer to the nearest cent Enter your answer as a positive value $ b What is the initial right of use asset Do not round intermediate calculations Round your answer to the nearest cent c What will RC report as an interest expense at Year 1 Round your answer to the nearest cent Enter your answer as a positive value $ d What will RC report as an amortization expense at Year 1 Do not round intermediate calculations Round your answer to the nearest cent Enter your answer as a positive value $ e What will RC report as the lease liability at Year 1 Do not round intermediate calculations Round your answer to the nearest cent Enter your answer as a positive value $ f What will RC report as the right of use asset at Year 1 Do not round intermediate calculations Round your answer to the nearest cent ", "question_description": "\"image", "transcribed_text": "Financial Statement Reporting for a Finance Lease Reynolds Construction (RC) needs a piece of equipment that costs $90,000. The equipment has an economic life of 2 years and no residual value. The equipment will not require maintenance because its useful life is so short. RC can borrow the full cost of the equipment at an interest rate of 10% with payments due at the end of the year. Alternatively, RC can lease the equipment for $50,000 with payments due at the end of the year. Assume RC chooses the lease, which is a finance lease for financial reporting purposes. Answer the following questions. (Hint: See Table 19-1.) a. What is the initial lease liability that must be reported on the balance sheet? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ b. What is the initial right-of-use asset? Do not round intermediate calculations. Round your answer to the nearest cent. c. What will RC report as an interest expense at Year 1? Round your answer to the nearest cent. Enter your answer as a positive value. $ d. What will RC report as an amortization expense at Year 1? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ e. What will RC report as the lease liability at Year 1? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ f. What will RC report as the right-of-use asset at Year 1? Do not round intermediate calculations. Round your answer to the nearest cent.", "related_book": { "title": "Fraud examination", "isbn": "538470844, 978-0538470841", "edition": "4th edition", "authors": "Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/158.jpg", "uri": "\/textbooks\/fraud-examination-4th-edition-158", "see_more_uri": "" }, "free_related_book": { "isbn": "3659779954", "uri": "\/textbooks\/human-resource-management-a-simplified-approach-1st-edition-9783659779954-100728", "name": "Human Resource Management A Simplified Approach", "edition": "1st Edition" }, "question_posted": "2024-05-26 08:05:59", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/29-according-to-cognitive-dissonance-theory-why-do-people-change-224446", "description": "29. 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