Connect Access Card for Financial Accounting
9th Edition
ISBN: 9781259738678
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Chapter S, Problem 2P
Converting Operating Leases to Capital Leases
LOS-1, S-3 Refer to Apple’s operating lease disclosure provided in S P-l. Assume that the payment amount in the ‘‘thereafter” row is equally spread out over the years 2018–2022 and that the appropriate discount rate is still 6 percent. What is the present value of Apple’s “total minimum lease payments” at the end of fiscal 2012?
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Assume Fortune Brands, Inc., reports the following footnote relating to its leased facilities in its 2016 10-K report.
Future minimum rental payments under noncancelable operating leases as of December 31, 2016 are as follows:
(In millions)
2017..
2018.
2019.
2020.
2021.
Remainder.
Total minimum rental payments..
Compute the present value of these operating leases using a discount rate of 7% and round the remaining lease life to the nearest whole year.
Select one:
O
O
O
$ 45.6
33.5
26.9
20.2
15.7
37.3
$179.2
A. $179.2 million
B. $140.7 million
C. $127.3 million
D. $154.9 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%.
Caleb's Corp disclosed the following minimum rental commitments under non-cancelable operating leases in its 2020 annual report (in millions).
Thereafter
Total
Operating
Leases
2021 $24,424
2022
25,245
2023
25,065
2024
24,682
2025
What is the approximate present value of the minimum lease payments? Assume a discount rate of 6.0%.
Note: Round the remaining lease term to the nearest whole year, using the final lease payment provided as an estimate of annual future payments.
Select one:
@
.
24,087
292,668
$416,171
a. $373,713 million.
b. $306,046 million.
c. $416,171 million.
d. $310,424 million *
e. $255,007 million.
Chapter S Solutions
Connect Access Card for Financial Accounting
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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- In Note 11, of its 2018 financial statements, Chipotle (CMG) reported the following future operat- ing lease information: E5.12 Contractually required future minimum cash lease payments under existing operating leases as of December 31, 2018, are as follows: $ 294,191 296,579 294,941 295,290 2019 2020 . 2021 2022 290,980 2,478,397 2023 Thereafter. Total minimum lease payments $3,950,378 a. Assuming a discount rate of 5 percent, estimate the unrecognized asset and liability for assets acquired under operating leases for CMG at December 31, 2018. b. Given the estimated unrecognized liability calculated in part a., what impact does including this amount have on the liabilities of CMG reported on the balance sheet?arrow_forwardUse the information pertaining to Laura Leasing Company and Plote Company from E21.15. Assume that the expected residual value at the end of the lease is $10,000, such that the payments are $24,638.87. Instructions Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. In E21.15 Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Plote Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years. 2. The fair value of the asset at January 1, 2020, is $80,000. 3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $7,000, none of which is guaranteed. 4. The agreement requires equal annual…arrow_forwardRequired State with reasons what type of lease you think this is Compute the present value of the minimum lease payments Prepare schedule of the lease payments for the lease period What expense would Massey Ferguson recognize on June 30 2011? and 2012arrow_forward
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