At the beginning of 2020, Trump Company leased an equipment with the following information: Annual rental payable at the end of each year P450,000; residual value guarantee P50,000; Lease incentive received P20,000; Lease term 4 years; Useful life of the equipment 8 years; implicit interest rate 10%; present value of an ordinary annuity of 1 at 10% for 4 periods 3.17; present value of 1 at 10% for 4 periods 0.68. What is the cost of right of use asset? A. P1,440,500 B. P1,460,500 C. P1,456,500 D. P1,830,000

Q: n January 1,2020, an equipment of ABC Company with a carrying value of P 1,500,000 was sold at P…

A: The present value of lease payment would recognized as gain on sale to recognized by ABC company.

Q: On January 1, 20x6, Day Corp. entered into a 10- year lease agreement with Ward, Inc. for industrial…

A: The Initial amount of lease liability shall be measured at remaining lease payments made over lease…

Q: On January 1, 2020, Gold Company entered into a 5-year lease of a floor of a building with the…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: Skkrrt Company entered into a lease agreement for the use of a new equipment on January 1, 2020. The…

A: Lease liability is an accounting term that refers to the financial obligation to make payments that…

Q: On January 1, 2022, Gobert Corp. leases equipment from Mitchell, Inc. The lease calls for annual…

A: Gobert Corp leases machine from Mitchell Inc.. According to IFRS 16, the lessee has to record the…

Q: On January 1,2020, an equipment of ABC Company with a carrying value of P 1,500,000 was sold at P…

A: In this question, we have to recognize the gain on sale of leaseback.

Q: On December 31,2019, ABC Company leased equipment to DEF Company for a 4 year period ending December…

A: Lease:  Lease refers to an agreement where the Lessor permit to use of the asset to Lessee in return…

Q: At the beginning of 2020, Trump Company leased an equipment with the following information: Annual…

A: Right of use of assets:-It is the amount that appeared in the balance sheet of the lessee as the…

Q: n January 1, 2020, Gold Company entered into a 5-year lease of a floor of a building with the…

A: 1) Computation of Lease liability, January 1, 2020 S.No. Particulars Amount ($) P V Factor @ 8%…

Q: On January 1, 2020, Smith Company signed a five-year Note for the acquisition of equipment. Annual…

A: As the payments are made at the end of the year i.e. December 31,2020, we will use present value of…

Q: Calculate the finance cost recognized in the statement of comprehensive income for the year ended…

A: The lease is a written contract between the two parties. In the lease, one party rents its machinery…

Q: On 1 July 2020, Pininfarina, an Italian automotive design service, acquired equipment under a…

A: On 01.07.2020, Acquired equipment under 4 year finance lease  Present value of equipment = $1077450…

Q: On 1 July 2020, the company had entered into a five-year lease agreement for an asset with RF…

A: Amount charged to Income statement = Interest expense + Amortization Expense

Q: On January 1, 2018, Jasperse Corporation leased equipment under a finance lease designed to earn the…

A: Annual payments = $ 75000 Lease agreement period = 10 years Rate of return = 12 % Annual maintenance…

Q: On December 31, 2020, the lessor company leases equipment to the lessee company with 8 equal annual…

A: When an asset is provided by the lessor to the lessee who requires that particular asset, then this…

Q: On January 1,2020, Cielo Company leased an equipment from a lessor with the following pertinent…

A: Lease liability as of December 31, 2022 = (Annual lease payment x PV of an ordinary annuity of 1 for…

Q: On January 1, 20x1, Entity X (Customer) enters into a 4-year lease of equipment with Entity Y…

A: 1) At the commencement of the lease all the lease liability initially measured at present value of…

Q: Company leased a new machine from North Company on May 1, 2019, under a lease with the following…

A: Right of use of assets is present value of lease payment after deduction of salvage value after 10…

Q: On January 1, 2020, ABC Company leased a building with the following information: Annual rental…

A: It is given that: Annual rent at the end of each year = $1,000,000 Initial direct cost - $400,000…

Q: On 1 July 2020, the company had entered into a five-year lease agreement for an asset with RF…

A: Amount charged to Income statement = Interest expense + Amortization Expense

Q: On January 1, 2022, Cage Company contracts to lease equipment for 5 years, agreeing to make a…

A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: Maureen Inc. is a dealer of machinery. On January 1, 2020, it leased a machinery to another entity…

A: Present value of lease receivables = (Annual payment payable x  PV of ordinary annuity for 5 periods…

Q: On December 31, 2020, Roque Company leased machinery with a fair value of $1,260,000 from Sage…

A: Particulars Amount $ Lease rentals (A) 240000 Present value of annuity due of 1…

Q: On January 1,2020, Cielo Company leased an equipment from a lessor with the following pertinent…

A: Annual rental payable at the end of each year P5,00,000 Lease Term 8 years Implicit interest…

Q: of six year

A: Explanation a)Annual lease payments=P1,200,000 Annual executory payments=P200,000 PV of an ordinary…

Q: On January 1, 2020, Edgar Company entered into a six-year lease with a lessor. Annual lease payments…

A: a)Annual lease payments=P1,200,000 Annual executory payments=P200,000 PV of an ordinary annuity of 1…

Q: On January 1, 2020 , Athena Company entered into a ten-year noncancelable lease requiring year-end…

A: Lease is the agreement between two parties in which one gives the asset to the other to use without…

Q: 000 are due December 31 for 10 years. The equipment’s useful life is 10 years, and the interest…

A: Given: Annual lease payments of P400,000 Interest 10% First lease payment P 2,700,000

Q: On January 1, 2020, sold a machinery and immediately leases it back for a period of 4 years.…

A:

Q: Use the following information for the next two items: With Corporation entered into a lease with…

A: Lease accounting: Lease accounting is an accounting system used to record the financial impact due…

Q: On Dec.31, 2021, Splinter Company leased equipment from Land Company with the following date: - The…

A: In accordance with PFRS, upon initial measurement an asset is measured at cost which consists of the…

Q: At the beginning of 2020, VIXEN Company leased an equipment with the following information: Annual…

A: Right of use asset is recognised at present value of lease payments + initial direct cost -lease…

Q: At what amount will Cielo company present its lease liability as of December 31,2022? * On January…

A: As per IFRS 16 lease, at initial recognition of the lease liability includes Present value of lease…

Q: On January 1,2020, Cookie Company leased an equipment from Sydney Company for 8 years with annual…

A: Initial measurement of Right-of-Use Asset and lease liabilities: Year PV Factor @ 10% Annual…

Q: At the beginning of 2020, VIXEN Company leased an equipment with the following information: Annual…

A: Present value of lease = Present value of  Annual rental payable + Present value of residual value…

Q: On March 31, 2020, Ahlam Corporation signed a 5-year noncancelable lease for a machine. The terms of…

A:

Q: At the beginning of 2020, Trump Company leased an equipment with the following information: Annual…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On January 1, 2020, Charmaine Company entered into an eight-year lease for an equipment. Charmaine…

A: Carrying value represents the value of the asset which is based on the balance sheet of the company.…

Q: Kit Company leased equipment at an annual rental of P45,000 payable in advance for five years.…

A:

Q: Rayleigh Company had an asset costing P 5,239,000. The asset was leased on January 1, 2020 to…

A: A lease is a contract between the parties that provides the right to use the asset for an agreed…

Q: 3. At the beginning of 2020, VIXEN Company leased an equipment with the following information:…

A: Present value of lease = Present value of  Annual rental payable + Present value of residual value…

Q: On January 1,2020, an equipment of ABC Company with a carrying value of P 1,500,000 was sold at P…

A: Present value of annual lease payments over 5 years discount at 10%... Annual lease…

Q: On December 31, 2020, Roe Company leased a machine from Colt Company for a five-year period Equal…

A: Lease liability :— It is the obligation of making payment under the lease term by lesse to lessor.…

Q: On January 1,2020, an equipment of ABC Company with a carrying value of P 1,500,000 was sold at P…

A: Present value  of lease payments  =  150,000 × PVAF(10%,5Years) = 150,000 × 3.79078676939 =…

Q: On January 1, 2020, Gold Company entered into a 5-year lease of a floor of a building with the…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Haystack, Inc. manufactures machinery used in the mining industry. On January 2, 2018, it leased…

A: Here, Cost of the equipment = £480,000  Selling price of the equipment = £702,000  Interest rate =…

Q: On January 1, 2020, Gold Company entered into a 5-year lease of a floor of a building with the…

A: Explanation:

Q: North Blue Company leased a new copier from Kixko Company on June 1, 2019, under a lease with the…

A: Amount of right-of-use asset = Annual rental payable at the beginning of each lease year x Present…

Q: What is the balance of lease liability on December 31, 2020?

A: Lease liability is an accounting term that refers to the financial obligation to make payments that…

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.