Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was $19 million.

image text in transcribed

Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was $19 million. . This noncancelable lease had the following terms: Lease payments: $3,173,776 semiannually; first payment at January 1, 2021; remaining payments at June 30 and December 31 each year through June 30, 2025. Lease term: 5 years (10 semiannual payments). No residual value; no purchase option. Economic life of equipment: 5 years. Implicit interest rate and lessee's incremental borrowing rate: 8% semiannually. Fair value of the computers at January 1, 2021: $23 million. . . What is the outstanding balance of the lease liability in Lone Star's June 30, 2021, balance sheet? (Round your answer to the nearest whole dollar.) Multiple Choice $18,238,546. O $17,338,555. O $23,000,000 O None of these answer choices is correct

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

Quality Management System A Planning And Auditing Guide

Authors: Walter Willborn

1st Edition

083113013X, 978-0831130138

More Books

Students also viewed these Accounting questions

Question

=+Be prepared to share your ideas with the class.

Answered: 1 week ago

Question

Presentation Aids Practicing Your Speech?

Answered: 1 week ago