b. all noncurrent liabilities. c. current portions in current liabilities and the remainder in noncurrent liabilities. d. deferred credits. 48. To avoid leased asset capitalization, companies can devise lease agreements that fail to satisfy any of the four leasing criteria.
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.
Issue: Are the ordinances written by the Westerly Town council constitutional under the First and Fourteenth Amendments? Holding: No, the ordinances as written are unconstitutional under the First and Fourteenth Amendments. Reasoning: Under the rule of law presented in Lakewood, 486 U.S. at 770, 108 S.Ct. at 1243-44, the standards must be explicitly set out in the ordinance itself, a judicial construction or a well-established practice. Disposition: It is ordered that the defendants are enjoined from conducting a show case hearing, revoking the plaintiffs’ license pursuant to these ordinances.
Problems and Cases 5. C. Colbert bought an apartment house with $60,000 cash and a mortgage loan of $100,000. The loan was made at an interest rate of 10.5 percent and requires annual payments for 25 years. What are the payments on this loan? Answer: $944.18 7.
This reduction is expected to be completed by January 31, 2012 and will approximately cost $3 million dollars. The cost of terminating employees shall not be recorded in the year ended December 31, 2011. ASC 420-10-25-4 says, “An arrangement for one-time employee termination benefits exists at the date the plan meets all of the following criteria and has been communicated to employees.” Following these guidelines we do not meet requirements, because we have not communicated to the employees the benefits they will receive upon termination and Pharma Co. hasn’t specified the job classification of the 120 employees. Otherwise, this cost will be recognized when incurred at fair
Subject to the other provisions of section 121, a taxpayer may exclude gain only if, during the 5-year period ending on the date of the sale or exchange, the taxpayer owned and used the property as the taxpayer's principal residence for periods aggregating 2 years or more.” Mr. Junkiewicz and his wife have permanently resided in the home that was sold for 13 years from time of purchase in 2000 to time of sale in 2013, therefore meet the criteria for the exclusion of gain from sale of a principle
Memo Date: 7/10/2013 Re: NeedsSpace Lease Provisions ________________________________________ NeedsSpace has entered into a lease agreement with WeHaveIt to rent space for its corporate offices. The lease is classified as an operating lease with a term of ten years and no option to renew. NeedsSpace has placed into service a few leasehold improvements such as temporary walls, HVAC, and carpeting. The leasehold improvements have economic useful lives of ten years. There are two provisions in the lease agreement NeedsSpace needs to be aware of: (1) “Lessor may require the lessee to perform general repairs and maintenance on the leased premises;” and (2) “Lessor may require the lessee to remove all leasehold improvements such that
If 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.
On March 31, 2011, Mary borrowed $200,000 to buy her principal residence. Mary paid 3 points to reduce her interest rate from 6 percent to 5 percent. The loan is for a 30-year period. What is Mary's 2011 deduction for her points paid? A.
Name:_______________ Part I Open-ended question (10 points; 20% of exam) ID:____________ For Quick Start the first month in business has ended. In the last days of December 2005, they already received contributed capital of € 6,000 and they obtained a five-year bank loan of € 24,000 at an annual rate of interest of 10 percent. Interest has to be paid each year on October 31. On December 31, 2005 various store equipment was purchased at a total cost of € 12,000, paid in cash. It is expected that the equipment has to be replaced after five years.