Business, 29.11.2019 04:31 sulemmaa

Anthony incorporated leases a piece of machinery to irving company on january 1, 2017, under the following terms.1.the lease is to be for 4 years with rental payments of $12,471 to be made at the beginning of each year.2.the machinery' has a fair value of $67,000, a book value of $50,000, and an economic life of 10 years.3.at the end of the lease term, both parties expect the machinery to have a residual value of $25,000. to protect against a large loss, anthony requests irving to guarantee $17,500 of the residual value, which irving agrees to do.4.the lease does not transfer ownership at the end of the lease term, does not have any bargain purchase options, and the asset is not of a specialized nature.5.the implicit rate is 5%, which is known by irving.6.collectibility of the payments is probable. instructions(a) evaluate the criteria for classification of the lease, and describe the nature of the lease.(b) prepare the journal entries for irving for the year 2017.(c) prepare the journal entries for anthony for the year 2017.(d) suppose irving did not guarantee any amount of the expected residual value. how would your answers to parts () change?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 05:10

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.

Answers: 1

Answer

Business, 22.06.2019 13:40

A.j. was a newly hired attorney for idle time gaming, inc. even though he reported directly to the president of the company, a.j. noticed that the president always had time to converse with the director of sales, calling on him to get a pulse on legal/regulatory issues that, as the company attorney, a.j. could have probably handled. a.j. also noted that the hr manager’s administrative assistant was the go-to person for a number of things that would make life easier at work. a.j. was recognizing the culture at idle time gaming.

Answers: 3

Answer

Business, 22.06.2019 21:20

Rediger inc., a manufacturing corporation, has provided the following data for the month of june. the balance in the work in process inventory account was $28,000 at the beginning of the month and $20,000 at the end of the month. during the month, the corporation incurred direct materials cost of $56,200 and direct labor cost of $29,800. the actual manufacturing overhead cost incurred was $53,600. the manufacturing overhead cost applied to work in process was $52,200. the cost of goods manufactured for june was:

Answers: 2

Answer

Business, 22.06.2019 21:50

Abus pass costs $5 per week. which of the following equations shows the total cost in dollars, t, of the bus pass for a certain number of weeks, w? t = 5w w = 5t t = 5 + w w = 5 + t

Answers: 3

Answer

You know the right answer?

Anthony incorporated leases a piece of machinery to irving company on january 1, 2017, under the fol...

Questions