Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2013. The manufacturing cost of the computers was $17 million.
This non-cancelable lease had the following terms:
•
Lease payments: $3,002,038 semiannually; first payment at January 1, 2013; remaining payments at June 30 and December 31 each year through June 30, 2017.
•
Lease term: 5 years (10 semi-annual payments)
•
No residual value; no bargain purchase option
•
Economic life of equipment: 5 years
•
Implicit interest rate and lessee's incremental borrowing rate: 9% semi-annually
•
Fair value of the computers at January 1, 2013: $21 million
Collectibility of the rental payments is reasonably assured, and there are no lessor costs yet to be incurred.
What is the interest revenue that Technoid would report on this lease in its 2013 income statement? (Round your answer to the nearest dollar.)
A) $0.
B) $3,115,234.
C) $1,579,821.
D)None of these is correct.
Answers: 2
Business, 21.06.2019 19:30
Consider the following ethical argument. which of the three statements represents the moral statement about a moral principle? statement 1: a dealership advertised a car at a very low price, but only had a similar higher priced model in stock. statement 2: it is wrong to perform a bait and switch. statement 3: the dealership was wrong to advertise the car on special sale when in actually it was not available.
Answers: 3
Business, 22.06.2019 08:30
Blank is the internal operation that arranges information resources to support business performance and outcomes
Answers: 2
Business, 22.06.2019 09:00
Harry is 25 years old with a 1.55 rating factor for his auto insurance. if his annual base premium is $1,012, what is his total premium? $1,568.60 $2,530 $1,582.55 $1,842.25
Answers: 3
Business, 22.06.2019 13:40
Computing equivalent units is especially important for: (a) goods that take a relatively short time to produce, such as plastic bottles. (b) goods with sustainability implications in their production processes. (c) goods that are started and completed during the same period. (d) goods that take a long time to produce, such as airplanes.
Answers: 2
Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2...
Social Studies, 26.05.2021 15:20
English, 26.05.2021 15:20
Health, 26.05.2021 15:20
Chemistry, 26.05.2021 15:20
Spanish, 26.05.2021 15:20
English, 26.05.2021 15:20
English, 26.05.2021 15:20
Mathematics, 26.05.2021 15:20