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Perry Freight Co. leased a trailer to Harper Inc. for use in delivering inventory. The finance lease has a 3-year term, 5% implicit rate, and
Perry Freight Co. leased a trailer to Harper Inc. for use in delivering inventory. The finance lease has a 3-year term, 5% implicit rate, and begins on January 1, 2018. The lease requires a down payment of $10,000 and two equal annual lease payments on December 31 of 2018 and 2019. The list price of the trailer on the inception date is $50,000. What is the dollar amount of each annual payment that Perry Freight Co. will receive a. 26,890 b. 18,360 c. 21,512 d. 14,688 27 On January 1, 2016, Westeros Corporation issued 2,400,000 of twelve-year, 8% bonds at an effective (market) interest rate of 10%. The bonds make a cash interest payment each year on December 31. What are the cash proceeds that Westeros received on January 1, 2016? a. 2,762,732 b. 2,105,061 c. 2,400,000 d. 2,072,943 On December 31, 2019, Hobbs Inc. had 18,900 shares outstanding of $12.60 par value common stock. The shares were originally issued for $36 per share. On January 1, 2020, Hobbs announced a 3 for 1 stock split of its common stock with a corresponding reduction in the stock's par value. The market price of the stock just before the split was $136 per share. After the stock split, how many shares are outstanding and what is the par value? Select one: a. 56,700 Shares Outstanding, $12.60 Par Value b. 6,300 Shares Outstanding, $4.20 Par Value c. 56,700 Shares Outstanding, $4.20 Par Value d. 6,300 Shares Outstanding, $37.80 Par Value
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