On January 1, 2021, CHRISTMAS Company (lessee) entered into a 5-year lease for drilling equipment. CHRISTMAS accounted for the acquisition as a finance lease for ₱2,400,000, which includes a ₱100,000 purchase option that is reasonably certain to be exercised. CHRISTMAS estimates that the fair value of will be ₱200,000 at the end of its 8-year economic life. CHRISTMAS regularly uses the straight-line depreciation on similar equipment. For the year ended December 31, 2021, what amount should CHRISTMAS recognize as depreciation expense on the leased asset?  a. ₱ 460,000 b. ₱ 275,000 c. ₱ 480,000 d. ₱ 300,000

Q: On January 1, 2020, Eddie Company entered into a five-year finance lease for an equipment. Eddie…

A: Lease is a form of contract or arrangement between two parties under which one party provides it's…

Q: How much loss should be deferred beyond 2019 as a result of this leaseback transaction?

A: Lease:   Lease is a contract between two parties where, lessee (user of the asset) pays rental…

Q: Sushi Co., a lessor of equipment, purchased a new equipment for ₱1,000,000 on December 31, 2020. The…

A: Sushi Co., a lessor of equipment, purchased a new equipment for ₱1,000,000 on December 31, 2020. The…

Q: On January 1, 2021, Elle Company acquired a machine by signing a four-year lease. Annual rentals are…

A: The lease liability is calculated as the present value of future lease payments Lease liability =…

Q: On January 1, 2020, MCU Company sold an equipment with carrying amount of P6,000,000 and a remaining…

A: Sale and lease back is a transaction where an entity first sells it asset to another entity and then…

Q: On January 1, 2019, SMB Co. entered into a 10-year lease for equipment. The acquisition was…

A: Carrying value: The face amount of bond, less unamortized discount, or plus unamortized premium, is…

Q: Sunset Company, as lessee, enters into a lease agreement on January 1, 2020, to lease equipment. The…

A: Partial amortization schedule:

Q: Happy Corporation leased equipment to Great Company on January 1, 2021. The lease is for an…

A: Option (C) is the correct answer.

Q: On January 2, 2022, Bergify Co. entered into a 5-year lease contract for drilling equipment. Bergify…

A: Under the double-declining balance method, the depreciation is charged on the declining balance of…

Q: On January 1, 2021, Nori Mining Company (lessee) entered into a 5 year lease for drilling equipment.…

A: ANSWER   Bargain Purchase Option allows the lessee to purchase the property at the end of the lease…

Q: EQUIRED: a.) At what amount should Diana record the leased asset at January 1,2020? b.) Prepare the…

A: Lease Payment 86,680 Lease Term  5 year Unguaranteed Residual Value 50000 fair value of the…

Q: On December 31, 2020, Lesley Co. signed a 10-year noncancelable lease agreement to lease a storage…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: January 1, 2021, Elle Company acquired a machine by signing a four-year lease. Annual rentals are…

A: Present value of lease liability is::P6,97,380.... Present value factor discounted for 10% for 4 yrs…

Q: On January 1, 2019, Morris Company sells land to Lopez Corporation for $10,000,000, and immediately…

A: Journal entries refers to the systematic documentation of the financial transaction of the company…

Q: On January 1, 2019, Carey Inc. entered into a noncancelable lease agreement, agreeing to pay $3,398…

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

Q: On January 1, 2021, RM Company (lessee) entered into a 5-year lease for drilling equipment. RM…

A: A lease is a contract between two or more persons in which one party provides its asset for use to…

Q: Sassy Company enters into a five-year lease agreement with Corral Company (lessor) over equipment on…

A:

Q: Brent Corporation owns equipment that cost $80,000 and has a useful life of 8 years with no salvage…

A:

Q: kysong Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company.…

A: Lease agreements are legal contracts where one party grants another party a right to use the…

Q: On 1 January 2021 Bob Company sells an item of machinery to Jaison Company for its fair value of…

A:

Q: Assume that on 1 January 2020, Kimberly-Clark Corp. signs a 10-year noncancelable lease agreement to…

A: a) Given,       Non-cancelable lease period(year) = 10          Equal rental payment = 83,824…

Q: On January 1, 2019, ABC Co. entered into a 5-year lease for a construction equipment. ABC Co.…

A:

Q: MORTON KOOPA JR. Inc. is on the business of financing and leasing machineries. On August 1, 2021,…

A: Given data: Annual lease payment = 100,000 Lease term = 6 years IRR = 10%

Q: RDBS purchased an asset costing £1,000,000 at the beginning of the year 2018. It has an expected…

A: A finance lease or a capital lease is a transaction in which the asset is transferred under a…

Q: Bulls, Inc. leases a piece of equipment to Bucks Company on January 1, 2020. The contract stipulates…

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: .Happy Corporation leased equipment to Great Company on January 1, 2021. The lease is for an…

A: Ans. The expenses related to negotiating and arranging the lease will be treated as an indirect cost…

Q: On January 1, 2019, TharnCorporation leased a machinery from TypeCompany on a five-year lease term…

A: lease payments includes option for exercise.

Q: January 1, 2022, Tiktok  Company leased a heavy equipment to be used in its construction business.…

A: The right-of-use asset refers to the asset taken on the lease by the lessee entity. It is recognized…

Q: On January 2, 2016, Nori Mining Co. (lessee) entered into a 5-year lease for drilling equipment.…

A:

Q: At the beginning of current year, Killer Company entered into a 5-year lease for drilling equipment.…

A: Step 1 Conditions for finance lease: Asset transferred at the end of the term to the lessee. Option…

Q: a. Prepare the relevant journal entries in the first year of the lease. b. Prepare the relevant…

A: Leasee Magnitude Ltd  Term of Lease 3 years Use full life of Plant 7  years Lease Rental…

Q: To raise operating funds, Pepero Company sold its equipment on March 31, 2019 for P470,000 and…

A: Step 1 A leaseback is an arrangement in which the company that sells an asset can lease back that…

Q: Sarasota Corporation entered into a lease agreement on January 1, 2020, to provide Ivanhoe Company…

A: What is meant by Lease? The agreement under which the owner of the asset provides the asset to other…

Q: On January 1, 2021, Sandhill Corporation signed a 5-year noncancelable lease for equipment. The…

A: Account title and explanation Calculations Amount($) Present value of minimum lease payments…

Q: Zinc Co. leased equipment from Helium Company on July 1, 2018 for an 8- year period expiring June…

A: Lease refers to a contract under which the owner of a property allows another party to use the…

Q: Sushi Co., a lessor of equipment, purchased a new equipment for ₱1,000,000 on December 31, 2020. The…

A: Sushi Co., a lessor of equipment, purchased a new equipment for ₱1,000,000 on December 31, 2020.The…

Q: n January 1, 2021, Dean Corporation signed a ten-year noncancelable lease for certain machinery. The…

A: Depreciation is the loss of an asset's value due to normal wear and tear. Machinery, furniture, and…

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: On January 1, 2020, Flower Corp. enters into an agreement with Nicki Rentals Inc. to lease a machine…

A: Lease means to give on rent and lessor refers to the seller and lesse refers to the buyer.Lease…

Q: On January 1, 2020, Parker Company signed an 8-year noncancelable, nonrenewable lease agreement to…

A: There are mainly 2 types of lease: Operating and capital lease from the point of view of the lesee…

Q: Ricky Company is a dealer in property. On January 1, 2020, the entity entered into a finance lease…

A: Total cost of sale = cost of the car + legal fees  = P600,000  + P20,000 = P620,000

Q: On January 2021 Bob Company sells an item of machinery to Jaison Company for its fair value of…

A:

Q: n January 1, 2022, Tiktok  Company leased a heavy equipment to be used in its construction business.…

A: Requirement : In the question it asked to calculate the cost of right to use assets with the given…

Q: Ricky Company is a dealer in property. On January 1, 2020, the entity entered into a finance lease…

A: Total cost of sale = cost of the car + legal fees  = P600,000  + P20,000 = P620,000

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.