Use the information for Lai Corporation from BE20–11. Assume that the direct financing lease was recorded at a present value of $175,000. Prepare Lai’s December 31, 2011 entry to record interest.
Answer to relevant QuestionsUse the information for Lai Corporation from BE20–11. Assume that instead of costing Lai $175,000, the equipment was manufactured by Lai at a cost of $137,500 and the equipment’s regular selling price is $175,000. ...Lessee Corp. agreed to lease property from Lessor Corp. effective January 1, 2011, for an annual payment of $23,576.90, beginning January 1, 2011. The property is made up of land with a fair value of $100,000 and a ...Use the information for Merrill Corporation from BE20–6. Assume that a residual value of $17,000 is expected at the end of the lease, but that Merrill does not guarantee the residual value. Prepare Merrill’s September ...Pucci Corporation, a machinery dealer whose stock trades on the Toronto Stock Exchange, and so uses IFRS, leased a machine to Ernst Corporation on January 1, 2011. The lease is for a six-year period and requires equal annual ...On September 15, 2011, Local Camping Products Limited, the lessee, entered into a 20-year lease with Sullivan Corp. to rent a parcel of land at a rate of $30,000 per year. Both Local and Sullivan use private enterprise GAAP. ...
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