Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello! Could you, please, help me to fill in missing answers? Analyzing and Interpreting Footnote on Operating and Capital Leases Verizon Communications, Inc., provides the

Hello! Could you, please, help me to fill in missing answers?

Analyzing and Interpreting Footnote on Operating and Capital Leases Verizon Communications, Inc., provides the following footnote relating to its leasing activities in its 10-K report. The aggregate minimum rental commitments under noncancelable leases for the periods shown at December 31, 2010, are as follows:

2011 $ 97 $ 1,898
2012 74 1,720
2013 70 1,471
2014 54 1,255
2015 42 1,012
Thereafter 81 5,277
Total minimum rental commitments 418 $ 12,633
Less interest and executory costs (86)
Present value of minimum lease payments 332
Less current installments (75)
Long-term obligation at December 31, 2010 $ 257

(a) Confirm that Verizon capitalized its capital leases using a rate of 7.4%.

N Amount IRR
0 Answer Incorrect 0.00 points out of 1.00 Answer Correct 1.00 points out of 1.00 %
1 Answer Incorrect 0.00 points out of 1.00
2 Answer Incorrect 0.00 points out of 1.00
3 Answer Incorrect 0.00 points out of 1.00
4 Answer Incorrect 0.00 points out of 1.00
5 Answer Incorrect 0.00 points out of 1.00
6 Answer Incorrect 0.00 points out of 1.00
7 Answer Incorrect 0.00 points out of 1.00
(c) Compute the present value of Verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places.(Use a financial calculator or Excel to compute. Do not round until your final answers. Round each answer to the nearest whole number.)
Year 1 Answer Correct 1.00 points out of 1.00
Year 2 Answer Correct 1.00 points out of 1.00
Year 3 Answer Correct 1.00 points out of 1.00
Year 4 Answer Correct 1.00 points out of 1.00
Year 5 Answer Correct 1.00 points out of 1.00
After 5 Answer Incorrect 0.00 points out of 1.00
Total* Answer

Incorrect

0.00 points out of 1.00

* (Use subsequent rounded answers for calculation.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statement Analysis And Security Valuation

Authors: Stephen H Penman

4th Edition

0073379662, 9780073379661

More Books

Students also viewed these Accounting questions

Question

5. How is Karen Slagles argument an example of confirmation bias?

Answered: 1 week ago

Question

1. Build trust and share information with others.

Answered: 1 week ago