Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please Technold Inc ses computer systems. Technold lenses computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was $19

please image text in transcribed
image text in transcribed
image text in transcribed
Technold Inc ses computer systems. Technold lenses computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was $19 million This noncancelable fease had the following terms: Lease payments $2,836,767 semiannually, first payment at January 1, 2021 remaining payments at June 30 and December 31each year through June 30, 2025. Lease term 5 years (10 semiannual payments) No residual value no purchase option Economic ife of equipment 5 years. Implicit intetest rate and lessee's incremental borrowing rate: 5% semiannually Fair value of the computers at January 1, 2021 $23 million What is the interest revenue that Technoid would report for this lease in its 2021 income statement? (Pound your answer to the nearest whole dollar) Multiple Choice $0 Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the site does not transfer to the lessee and there is no purchase option or guaranteed residui volue. The asset has an expected economic life of 12 years. The lease is noncancelable Cash Payment attective Interest Decrease in balance Payment 1 2 > 4 5 6 7 8 9 10 13,000 13,000 13,000 13,000 12.000 13,000 13,000 13.000 13,000 13,000 7,487 6,935 6,329 5,662 4,928 4.121 3,233 13,000 5,513 6,065 6.671 7,338 8.072 8.879 9,767 Outstanding Balance 87,867 74,867 69,354 63,289 56,618 49,280 41.200 32,329 22,552 2 2 What amount would the lessee record as annual amortization on the right-of-use is using the straight-line method (Round your answer to the nearest whole della Me Choc Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable Payment Cash Payment Etteetive Interest Decrease in balance 2 3 4 5 6 7 12,000 12,000 12,000 12.000 12,000 12,000 12,000 12,000 12,000 12.000 7,673 7.153 6,572 5,920 5,191 4,374 3,459 2 2 12,000 4,327 4,847 5,428 6,080 6,809 7.626 8,542 2 2 Outstanding Balance 75,939 63.939 59,612 54,765 49,337 43,257 36,448 28,822 20,281 8 9 10 7 What would be the outstanding balance after payment 107 Multiple Choice

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

Step: 3

blur-text-image

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

Research Methods For Accounting And Finance Global Management Series

Authors: Audrey Paterson, Kevin D. Ogorman, David Leung, Robert Macintosh, William Jackson

1st Edition

1910158895, 978-1910158890

More Books

Students also viewed these Accounting questions

Question

In what ways are relationship metaphors used in marketing? LO.1

Answered: 1 week ago

Question

What is the difference between stereotypes and prejudice? (p. 351)

Answered: 1 week ago

Question

Describe the new structures for the HRM function. page 724

Answered: 1 week ago