The Harris Company is the lessee on a four-year lease with the following payments at the...
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The Harris Company is the lessee on a four-year lease with the following payments at the end of each year: Year 1: $ 10,500 Year 2: $ 15,500 Year 3: $ 20,500 Year 4: $ 25,500 An appropriate discount rate is 7 percentage, yielding a present value of $59,539. a-1. If the lease is an operating lease, what will be the initial value of the right-of-use asset? Answer is complete and correct. Initial value of the right-of-use asset $ 59,539 a-2. If the lease is an operating lease, what will be the initial value of the lease liability? a-3. If the lease is an operating lease, what will be the lease expense shown on the income statement at the end of year 1? Lease expense a-4. If the lease is an operating lease, what will be the interest expense shown on the income statement at the end of year 1? Note: Leave no cells blank - be certain to enter "O" wherever required. Interest expense a-5. If the lease is an operating lease, what will be the amortization expense shown on the income statement at the end of year 1? Note: Leave no cells blank - be certain to enter "0" wherever required. Amortization expense b-1. If the lease is a finance lease, what will be the initial value of the right-of-use asset? Initial value of the right-of-use asset b-2. If the lease is a finance lease, what will be the initial value of the lease liability? b-2. If the lease is a finance lease, what will be the initial value of the lease liability? Initial value of the lease liability b-3. If the lease is a finance lease, what will be the lease expense shown on the income statement at the end of year 1? Note: Leave no cells blank - be certain to enter "O" wherever required. Lease expense h. If the leace is a finance leace what will he the interact ovnence chown on the income statement at the end of uns b-4. If the lease is a finance lease, what will be the interest expense shown on the income statement at the end of year 1? Note: Round your answer to the nearest dollar amount. Interest expense b-5. If the lease is a finance lease, what will be the amortization expense shown on the income statement at the end of year 1? Note: Round your answer to the nearest dollar amount. Amortization expense < Prev 25 of 25 Next The Harris Company is the lessee on a four-year lease with the following payments at the end of each year: Year 1: $ 10,500 Year 2: $ 15,500 Year 3: $ 20,500 Year 4: $ 25,500 An appropriate discount rate is 7 percentage, yielding a present value of $59,539. a-1. If the lease is an operating lease, what will be the initial value of the right-of-use asset? Answer is complete and correct. Initial value of the right-of-use asset $ 59,539 a-2. If the lease is an operating lease, what will be the initial value of the lease liability? a-3. If the lease is an operating lease, what will be the lease expense shown on the income statement at the end of year 1? Lease expense a-4. If the lease is an operating lease, what will be the interest expense shown on the income statement at the end of year 1? Note: Leave no cells blank - be certain to enter "O" wherever required. Interest expense a-5. If the lease is an operating lease, what will be the amortization expense shown on the income statement at the end of year 1? Note: Leave no cells blank - be certain to enter "0" wherever required. Amortization expense b-1. If the lease is a finance lease, what will be the initial value of the right-of-use asset? Initial value of the right-of-use asset b-2. If the lease is a finance lease, what will be the initial value of the lease liability? b-2. If the lease is a finance lease, what will be the initial value of the lease liability? Initial value of the lease liability b-3. If the lease is a finance lease, what will be the lease expense shown on the income statement at the end of year 1? Note: Leave no cells blank - be certain to enter "O" wherever required. Lease expense h. If the leace is a finance leace what will he the interact ovnence chown on the income statement at the end of uns b-4. If the lease is a finance lease, what will be the interest expense shown on the income statement at the end of year 1? Note: Round your answer to the nearest dollar amount. Interest expense b-5. If the lease is a finance lease, what will be the amortization expense shown on the income statement at the end of year 1? Note: Round your answer to the nearest dollar amount. Amortization expense < Prev 25 of 25 Next
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The journal entry to record the bond issuance would be as follows Date First day of the f... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
Posted Date:
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