Mr. Roxas pays monthly amortization of P54,100 for a parcel of land. The amortization factor for 5 years at 21% is 0.02705. If Mr. Roxas paid a down payment of 20% of the contract price, compute the principal obligation in which the monthly amortization is based?
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Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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- Lessee enters into a three year lease of equipment and agrees to make the following annual payments at the end of each year 10,000 in year one, 12,000 in year two and 14,000 in year three. Discount rate is approx. 4, 235% and right of use asset is depreciated on a straight line basis over the lease term. What is the value of the lease liability at the end of years 2 & 3?Mr. Roxas pays monthly amortization of P54,100 for a parcel of land. The amortization factor for 5 years at 21% is 0.02705. If Mr. Roxas paid a down payment of 20% of the contract price, compute the principal obligation in which the monthly amortization is based?Atty. Santa agreed to sell their condominium unit to a campanera worth 2.4 million pesos in two payment schedule: On the first 5 months, the price of the unit is amortized at 3% quarterly. The balance amount will be paid at 4% semiannually for 7 months. Prepare the amortization schedule. Amortization schedule content: Date, beg bal, payment, interest, principal, and end bal
- On January 1, 2020, an entity leased an equipment for four years at anannual rental of P170,000 payable at the end of each year. The estimateduseful life of the equipment is four years. The present value factor of anordinary annuity of 1 for four years of an implicit rate of 12% is 3.0373. Thelease provides for a transfer of ownership of the equipment to the lesseeat the end of the lease term. Compute for the depreciation expense forthe right of use of asset for the year ended December 31, 2020.On January 1, 2019. Eric, the lessee, and Betty, the lessor, signed a noncancelable lease agreement for Betty's equipment with a carrying amount of $60,000 and fair value of $75,000. The lease term is seven years with rental payments of $10,000 at the beginning of each year. Eric's incremental borrowing rate is 9%. The equipment is expected to have a residual value of $15,000 at the end of the lease, unguaranteed, and a useful life of 15 years. The collectability of the lease payments is probable for the lessor Betty. Instructions 1. Provide the journal entries required on the books of both Eric and Betty through December 31, 2020. 2. What if the residual value of $15,000 is guaranteed?Dahyun contracted a 4-year lease of a machinery with Jackson Wengon January 1, 20x1. Rent in 20x1 is ₱10,000 and as stipulated inthe contract, shall increase by 10% annually starting on January1, 20x2. Rentals are payable at every year end. Dahyun pays Jacksona lease bonus of ₱5,000 on January 1, 20x1. Dahyun opts to use thepractical expedient allowed under PFRS 16 for leases of low valueassets. How much is the lease expense in 20x1?
- On January 1, 2018, Mr. V leased his vacant lot for period of 12 years to Mr. J at an annual rate of 2,400,000. It was also agreed that Mr. J will pay the following: 4,800,000 representing rental payment for 2018 and 2019 Security deposit of 2,400,000 Annual real property tax of 30,000 The lease contract provides, among others that the lessee will construct a 5-storey building for parking purposes at a cost of 9,500,000. Ownership of the building shall belong to the lessor upon the expiration or termination of the lease contract. The building was completed on July 1, 2020 with an estimated useful life of 15 years. How much can Mr. J claim as deduction in relation to the lease in 2021?Ground Company leased a parcel of land to Sparks Company for six years. The lease agreement states that theSparks will pay rental of P200,000 on the first year, to be increased by P10,000 annually. There is also a provision that Ground is to receive a lease bonus of P30,000 and a security deposit of P60,000, refundable atthe end of the lease contract. How much is the rent expense of Sparks Company on the first year? How much is the rent income of Ground Company on the second year?Two years ago, the rental for the use of equipment and facilities as paid 5 years in advance, with option to renew the rent for another years by payment of P15,000 annually at the start of each year for renewal period. Now, the lessor asks the lessee If it could be possible to prepay the renewed 5 years period. If the lessee will consider the request, what would the fair prepayment to be made to the lessor if interest is now figured at 8%?
- Kit Company leased equipment at an annual rental of P45,000 payable in advance for five years. Under the lease contract, Kit is given the option to purchase the asset for P75,000 at the end of the lease term and Kit is reasonably certain to exercise this option. The appropriate interest rate is 12%. Present value of 1 at 12% for 5 periods is 0.5674. Present value of an annuity due of 1 at 12% for 5 periods is 4.0373. What is the capitalized cost of right of use equipment? a. 225,000 b. 300,000 c. 224,234 d. 189,679A contractor bought an asphalt plant from a commercial bank for a certain amount, and the two parties agreed that the contractor would pay an amount of (2) upon signing the contract as an advance, provided that he would pay ten equal annual installments of the value of each payment (0.5) and with an interest of (8%). The first installment starts to be paid at the beginning of the year The fifth is from signing the contract, so what is the value of the factory? And when the payment date came, he persuaded the bank management to postpone the payment (6 years), provided that the interest during this period is (12%), so what is the value of the new installments? After paying two installments, he decided to pay the remaining amount in full when the third installment is due. How much will he pay?On January 1, 2020, EF Corp. leased an equipment for 5 years at semi-annual rental of ₱325,000 payable every June 30 and December 31. The equipment had an estimated useful life of 7 years. EF Corp. has an option to purchase the equipment from the lessor by paying the lessor ₱200,000 at the lease expiration date. The lessee paid lease bonus amounting to ₱280,000 and direct lease expense which included installation and commissioning costs amounting to ₱125,000. The lessor will however reimburse EF Corp. 15% of the direct lease expense as a lease incentive.The annual implicit lease rate on the lease known to both parties at the lease inception was at 10% while the incremental borrowing rate of the EF Corp. was at 12%. The asset had an estimated salvage value of ₱100,000 after 5 years and ₱60,000 after 7 years.Requirements: If at lease inception, EF Corp. is reasonably certain to exercise the purchase option: (Use a PV FACTOR rounded off to 4 decimal places) Entry to record the…