2449 Words10 Pages

ACCT 311 Homework Assignment 7
https://hwguiders.com/downloads/acct-311-homework-assignment-7/
ACCT 311 Homework Assignment 7
1. On December 31, Year One, Ace signs a lease to use a truck for four years. The truck has a current value of $58,600. Four annual payments of $10,000 are to be paid with the first made on December 31, Year One. After that time, the truck (with an expected life of eight years) will be returned to the lessor. Ace has an incremental borrowing rate of 6 percent. The lessor has an implicit annual interest rate of 8 percent built into the contract. Ace is aware of this implicit rate. The present value of a four-year annuity due of $10,000 at a 6 percent annual rate is $36,700. The present value of a four-year annuity due of $10,000 at an 8 percent annual rate is $35,770. What liability should Ace report on its December 31, Year One, balance sheet?
1. $0
2. $10,000
3. $25,770
4. $26,700 2. A company leases a machine on January 1, Year One for five years which call for annual payments of $4,000 for the first year and then $10,000 per year after that. The present value of these payments based on a reasonable interest rate of 10 percent is assumed to be $38,000. This lease*…show more content…*

The Wasala Corporation leases an airplane on January 1, Year One for eight years for payments of $20,000 per year beginning immediately. The plane has an expected life of 10 years. The prime rate of interest is 6 percent but Wasala has an incremental borrowing rate of 8 percent. The present value of an ordinary annuity of $1 at 6 percent for 8 years is 6.22 and the present value of an ordinary annuity of $1 at 8 percent for 8 years is 5.75. The present value of an annuity due of $1 at 6 percent for 8 years is 6.58 and the present value of an annuity due of $1 at 8 percent for 8 years is 6.19. At the end of 8 years, title to the airplane will be conveyed to Wasala. How much expense should Wasala recognize in Year Two? (round to the nearest

The Wasala Corporation leases an airplane on January 1, Year One for eight years for payments of $20,000 per year beginning immediately. The plane has an expected life of 10 years. The prime rate of interest is 6 percent but Wasala has an incremental borrowing rate of 8 percent. The present value of an ordinary annuity of $1 at 6 percent for 8 years is 6.22 and the present value of an ordinary annuity of $1 at 8 percent for 8 years is 5.75. The present value of an annuity due of $1 at 6 percent for 8 years is 6.58 and the present value of an annuity due of $1 at 8 percent for 8 years is 6.19. At the end of 8 years, title to the airplane will be conveyed to Wasala. How much expense should Wasala recognize in Year Two? (round to the nearest

Related

## Acc 551 Midterm Exam Paper

1196 Words | 5 PagesQuestion: : (TCO D) A company issues $5,000,000, 7.8/%, 20-year bonds to yield 8% on January 1, 2010. Interest is paid on December 31. The proceeds from the bonds are $4,901,036. Using effective-interest amortization, how much interest expense will be recognized in 2010? 15.

## Acct 551 Quiz

569 Words | 3 Pages(TCO A) On March 1, 2010, Ruiz Corporation issued $800,000 of 8% nonconvertible bonds at 104, which are due on February 28, 2030. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 one share of Ruiz common stock, par value $25. The bonds without the warrants would normally sell at 95. On March 1, 2010, the fair market value of Ruiz's common stock was $40 per share and the fair market value of the warrants was $2.00. What amount should Ruiz record on March 1, 2010 as paid-in capital from stock warrants?

## Acct 553 Quiz Test

672 Words | 3 PagesHow many years will it take for $197,000 to grow to be $554,000 if it is invested in an account with a quoted annual interest rate of 8% with monthly compounding of interest? 8. At what quoted annual interest rate must $134,000 be invested so that it will grow to be $459,000 in 15 years if interest is compounded weekly? 9. An annuity pays $24,000 per year for 11 years (first payment one year from today).

## Advantages And Disadvantages Of Graded Unit 2 Management Accounting

2633 Words | 11 PagesThe business required £30,000 cash for working capital. The company gets a loan of £450,000 which was transfer into the business bank account in January as shown in appendix 6. The cash budget shows a balance of £3,918 in January and £16,335 February. The loan calculation is shown in appendix 8. This is expected to be paid back within 8 years by monthly paid instalments of £5.718.41 which was calculated on a 5.1% interest rate.

## Mba 560 5-24 & 6-25

274 Words | 2 PagesOne of the items was sold during the year. Required: Based on this information, how much product cost would be allocated to cost of goods sold and ending inventory, assuming use of: a. LIFO b. FIFO c. Weighted average (total cost/total number) | |Cost of goods sold |Ending inventory | |LIFO |700 |800 | |FIFO |800 |700 | |Weighted Average |750 |750 | Problem 2. Teague Company purchased a new machine on January 1, 2012, at a cost of $150,000. The machine is expected to have an eight-year life and a $15,000 salvage value. The machine is expected to produce 675,000 finished products during its eight-year life.

## Fin 540 Quiz

956 Words | 4 PagesThe parent receives annual dividends from the subsidiary of $2,500,000. If the parent's marginal tax rate is 34% and if the exclusion on intercompany dividends is 70%, what is the effective tax rate on the intercompany dividends, and how much net dividends are received? Question 20 New York Waste (NYW) is considering refunding a $50,000,000, annual payment, 14% coupon, 30-year bond issue that was issued 5 years ago. It has been amortizing $3 million of flotation costs on these bonds over their 30-year life. The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market.

## FIN 422: Assignment

956 Words | 4 PagesTerminal value at the end of year 8 is the value at that time of the after-tax net cash flows that the project is expected to provide after that date. (b) [2] What is the net present value of the project if it will require an initial outlay of $10,000? 3. [10] It is January 2010. Mr. Norton owns and operates a small-appliance repair shop.

## Str 581 Week 3 Vertical Analysis

1875 Words | 8 Pages24. Jayadev Athreya has started his first job. He will invest $5,000 at the end of each year for the next 45 years in a fund that will earn a return of 10 percent. How much will Jayadev have at the end of 45 years? • $2,667,904 • $5,233,442 • $1,745,600 • $3,594,524 25.

## Acct 550 Ch 11

755 Words | 4 PagesACCT 550 Week 7 Homework Chapter 11: E11-4, E11-9, E11-11, E11-17 E11-4 (Depreciation Computations—Five Methods) Wenner Furnace Corp. purchased machinery for $279,000 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and working hours of 25,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 25,500 units. Instructions From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round to the nearest dollar.)

## Acct 311 Final Paper

3190 Words | 13 PagesIf the lease contract gives Royal the option to buy the machine at the end of four years, then both parties must report the transaction as a capital lease 28. Danville Corporation buys a truck for $52,000 and leases it to Viceroy for 8 years. At the end of that time, Viceroy can buy the truck for $7,000 in cash. Which of the following is not true? 1.

### Acc 551 Midterm Exam Paper

1196 Words | 5 Pages### Acct 551 Quiz

569 Words | 3 Pages### Acct 553 Quiz Test

672 Words | 3 Pages### Advantages And Disadvantages Of Graded Unit 2 Management Accounting

2633 Words | 11 Pages### Mba 560 5-24 & 6-25

274 Words | 2 Pages### Fin 540 Quiz

956 Words | 4 Pages### FIN 422: Assignment

956 Words | 4 Pages### Str 581 Week 3 Vertical Analysis

1875 Words | 8 Pages### Acct 550 Ch 11

755 Words | 4 Pages### Acct 311 Final Paper

3190 Words | 13 Pages