Crane Corp. is a manufacturer of truck trailers. On January 1, 2025, Crane leased ten trailers...
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Crane Corp. is a manufacturer of truck trailers. On January 1, 2025, Crane leased ten trailers to Novak Company under a five-year noncancelable lease agreement. The following information about the lease and the trailers is provided: 1 2 3. 4 Equal annual payments that are due on January 1 each year provide Crane with an 8% return on net investment (the present value factor on an annuity due for 5 periods at 8% is 4.31213). The first payment will be made January 1, 2025. Titles to the trailers pass to Novak at the end of the lease. The fair value of each trailer is $57,000. The cost of each trailer to Crane is $51.300. Each trailer has an expected useful life of nine years. Collectibility of the lease payments is probable. TABLE 6.1 Future Value of 1 (Future of a Single Sun Periods 102500 104040 4 108243 5 1.10400 ON 1.00000 1.06000 10050 112300 11573 119100 " 10 weg 2002 RE 112014 1:34M 1.34010 141452 1374 147746 11000 130477 8848 128000 109085 11. 124007 131200 171004 1.89430 12 13404 134 1290 14129 15 13458 1430 220000 22066 Largh 140004 132142 25435 2017 280434 Crane Corp. is a manufacturer of truck trailers. On January 1, 2025, Crane leased ten trailers to Novak Company under a five-year noncancelable lease agreement. The following information about the lease and the trailers is provided: 1 2 3. 4 Equal annual payments that are due on January 1 each year provide Crane with an 8% return on net investment (the present value factor on an annuity due for 5 periods at 8% is 4.31213). The first payment will be made January 1, 2025. Titles to the trailers pass to Novak at the end of the lease. The fair value of each trailer is $57,000. The cost of each trailer to Crane is $51.300. Each trailer has an expected useful life of nine years. Collectibility of the lease payments is probable. TABLE 6.1 Future Value of 1 (Future of a Single Sun Periods 102500 104040 4 108243 5 1.10400 ON 1.00000 1.06000 10050 112300 11573 119100 " 10 weg 2002 RE 112014 1:34M 1.34010 141452 1374 147746 11000 130477 8848 128000 109085 11. 124007 131200 171004 1.89430 12 13404 134 1290 14129 15 13458 1430 220000 22066 Largh 140004 132142 25435 2017 280434
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