Three different lease transactions are presented below for Carla Vista Enterprises. Assume that all lease transactions start on January 1, 2021. Carla Vista does not receive title to the properties, either during the lease term or at the end of it. The yearly rental for each of the leases is paid on January 1 starting on January 1, 2021. Carla Vista Enterprises prepares its financial statements using ASPE. Manufacturing Equipment Office Vehicles Equipment Lease term 5 years 6 years 3 years Estimated economiç life 15 years 7 years 6 years Yearly rental payment $15,370 $15,348 $3,928 Fair market value of leased asset $99,050 $89,150 $16,910 Present value of lease rental payments $58,910 $69,023 $10,340
Three different lease transactions are presented below for Carla Vista Enterprises. Assume that all lease transactions start on January 1, 2021. Carla Vista does not receive title to the properties, either during the lease term or at the end of it. The yearly rental for each of the leases is paid on January 1 starting on January 1, 2021. Carla Vista Enterprises prepares its financial statements using ASPE. Manufacturing Equipment Office Vehicles Equipment Lease term 5 years 6 years 3 years Estimated economiç life 15 years 7 years 6 years Yearly rental payment $15,370 $15,348 $3,928 Fair market value of leased asset $99,050 $89,150 $16,910 Present value of lease rental payments $58,910 $69,023 $10,340
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 9E: Lessor Accounting with Guaranteed Residual Value Use the information for Edom Company in E20-8,...
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