FINANCIAL ACCOUNTING 9TH
16th Edition
ISBN: 9781308821672
Author: Libby
Publisher: MCG/CREATE
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Chapter S, Problem 1P
Converting Operating Leases to Capital Leases
Apple Corporation discloses the following information about its noncancelable operating leases in its 2012 annual report.
| (in millions) | |
| 2013 | $ 516 |
| 2014 | 556 |
| 2015 | 542 |
| 2016 | 513 |
| 2017 | 486 |
| Thereafter | 1,801 |
| Total minimum lease payments | $4,414 |
Assume that the payment amount in the “thereafter” row is all due at the end of 2018 and that the appropriate discount rate is 6 percent. What is the present value of Apple’s “total minimum lease payments” at the end of fiscal 2012?
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Students have asked these similar questions
Cabela's Corp disclosed the following minimum rental commitments under non-cancelable operating leases in its 2015 annual report (in millions).
Operating
Leases
2016
$ 24,424
2017
25,245
2018
25,065
2019
24,682
2020
24,087
Thereafter
292,668
Total
$416,171
What is the approximate present value of the minimum lease payments? Assume a discount rate of 6.0% and round the remaining lease term to the nearest whole year.
A.
$233,357 million
B.
$ 15,113 million
C.
$255,007 million
D.
$373,713 million
E.
None of the above
Do not give answer in image formate
Organic Markets reports operating lease information in its 2016 annual report (in millions). You determine that a discount rate of 6.0% is appropriate for Organic Markets and calculate the following. What economic liability is
potentially left off Organic Markets' balance sheet?
Note: Round the remaining lease term to the nearest whole year, using the final lease payment provided as an estimate of annual future payments.
Year
2017
2018
2019
2020
2021
Thereafter
Minimum operating
lease payments
$650
783
836
852
854
9,728
$13,703
Select one:
O a. $8,358 million
O
b. $13,703 million.
O
c. $10,183 million
O
d. $10,060 million.
Caleb's Corp disclosed the following minimum rental commitments under non-cancelable operating leases in its 2020 annual report (in millions).
Operating
Leases
2021
$48,848
2022
50,490
2023
50,130
2024
49,364
2025
48,174
Thereafter
Total
585,336
$832,342
What is the approximate present value of the minimum lease payments? Assume a discount rate of 6.0%.
Chapter S Solutions
FINANCIAL ACCOUNTING 9TH
Ch. S - Defining a Lessor Which of the following best...Ch. S - Prob. 2MCQCh. S - Prob. 3MCQCh. S - Prob. 4MCQCh. S - Prob. 5MCQCh. S - Prob. 6MCQCh. S - Prob. 1MECh. S - Prob. 2MECh. S - Prob. 3MECh. S - Prob. 4ME
Ch. S - Prob. 1ECh. S - Prob. 2ECh. S - Prob. 3ECh. S - Prob. 4ECh. S - Calculating a Deferred Tax Liability LOS-5 On...Ch. S - Prob. 6ECh. S - Prob. 7ECh. S - Prob. 8ECh. S - Prob. 9ECh. S - Prob. 10ECh. S - Converting Operating Leases to Capital Leases...Ch. S - Converting Operating Leases to Capital Leases...Ch. S - Computing Effective Tax Rates LOS-4 Below is...Ch. S - Prob. 4PCh. S - Prob. 5PCh. S - Prob. 6PCh. S - Analyzing Starbuckss Lease Disclosures The...Ch. S - Analyzing Disneys Income Tax Disclosures The...
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