Cullumber Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2017. The lease is for an 8-year period and requires equal annual payments of $33,300 at the beginning of each year. The first payment is received on January 1, 2017. Cullumber had purchased the machine during 2016 for $140,000. Collectibility of lease payments by Cullumber is probable. Cullumber set the annual rental to ensure a 4% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Cullumber at the termination of the lease. Assume that Dexter Corporation does not know the rate implicit in the lease used by Cullumber, and Dexter's incremental borrowing rate is 6%. In addition, assume that Dexter incurs initial direct costs of $10,000. Compute the amount of the lease liability and right-of-use asset for Dexter. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e. g. 5,275.) Lease liability Right-of-use asset Prepare all necessary journal entries for Dexter for 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e. g. 5,275.) Account Titles and Explanation Debit Credit Date 1/1/17 (To record the lease) (To record the first lease payment) 12/31/17 (To record interest expense) (To record amortization of the right-of-use asset)
Answers: 1
Business, 22.06.2019 11:40
On january 1, 2017, sophie's sunlounge owned 4 tanning beds valued at $20,000. during 2017, sophie's bought 3 new beds at a total cost of $14 comma 000, and at the end of the year the market value of all of sophie's beds was $24 comma 000. what was sophie's net investment
Answers: 3
Business, 22.06.2019 14:30
Your own record of all your transactions. a. check register b. account statement
Answers: 1
Business, 22.06.2019 22:00
Acompany's sales in year 1 were $300,000, year 2 were $351,000, and year 3 were $400,000. using year 2 as a base year, the sales percent for year 3 is
Answers: 2
Business, 22.06.2019 22:20
What type of negotiating strategy requires the supplier to open its books to the purchasers? a. competitive biddingb. cost-based price modelc. price-based modeld. market-based price modele. transparent negotiations
Answers: 1
Cullumber Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2017. Th...
Social Studies, 29.03.2021 01:40
History, 29.03.2021 01:40
Mathematics, 29.03.2021 01:40
Chemistry, 29.03.2021 01:40
Social Studies, 29.03.2021 01:40