PROBLEM 11 Gordon following datp any, as lessee, enters into a lease agreement on Julyt, 2004 for equipment. The a are relevant to the lease agreement: 1. The term of the noncancelable lease is 2. The fair value of the equipment on July 1, 2004 is $840,000. 3. Gordon depreciates the equipment using the straight line method. 4 years, with no renewable option. Payments of $253,613 are due on June 30 of each year economic life of 6 years with no residual value The equipment has an 4. Gordon's incremental borrowing rate is 10 used an implicit rate of 8% in computing the lease payments Present value factor of 4 periods at 8% is 3.31213 Present value factor of 4 periods at 10% is 3.16986 % per year. The lessee is aware that the lessor 5. Required: A) Prepare the journal entries on Gordon's books that relate to the lease for the following dates 1) July 1, 2004 2) December 31, 2004 B) Calculate gross lease receivable that would appear on the lessor's books PROBLEM TIL Presented below is information related to Marley Inc. pension data for 2011. Service cost Amortization of unrecognized net loss Amortization of unrecognized prior service cost Actual return on plan assets Projected benefit obligation at January 1,2011 Plan assets at January 1.2011 Contribution (funding) $600,000 90,000 65,000 800,000 750,000 300,000 200,000 165,000 Benefits paid to retirees Settlement rate 9% Expected rate of return 7% REQUIRED 1) Calculate pension expense for 2011 2) Prepare the journal to record the pension expense. OBLEM January 1, 2010, Warren Corporation had 700,000 shares of common stock outstanding rch 1, the corporation issued 200,000 new shares to raise additional capital. On July 1, poration declared and issued a 2-for-1 stock split. On October 1, the corporation purcha he market 400,000 of its own outstanding shares and retired them. 15,000 shares of 8%, $100 par value, non-cumulative, preferred stock were outstand year (convertible into 40,000 shares of common). Dividends were declared and paid for th Net income for 2010 was $3,800,000. Tax rate was 40%