Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Technoid incorporated sells computer systems. Technoid leases computers to Lone Star Company on January 1,2024 . The manufacturing cost of the computers was $20 milion.

image text in transcribed
image text in transcribed
Technoid incorporated sells computer systems. Technoid leases computers to Lone Star Company on January 1,2024 . The manufacturing cost of the computers was $20 milion. This noncancelable lease had the following terms: - Lease payments: $3,550,809 semiannually, first payment on Januery 1,2024 ; remaining payments on June 30 and December 31 each year through June 30,2028 . - 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: 10% seminnuolly. - Fair value of the computers on january 1,2024:\$24 million. What is the outstanding balance of the lease liability in Lone Star's balance sheet on June 30,2024 ? Note: Round your answer to the nearest whole dollar. Murple Choice None of these answer choices is correct 514.243,310 $24,000,000 What is the outstanding balance of the lease liability in Lone Star's balance sheet on June 30, 2024? Note: Round your answer to the nearest whole dollar. Multiple Choice None of these answer choices is correct. $18,243,310 $24,000,000 $18,943,301

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

Financial Audit American Battle Monuments Commissions Financial Statements For Fiscal Years 2011 And 2010

Authors: Government Accountability Office

1st Edition

1492310883, 978-1492310884

More Books

Students also viewed these Accounting questions