Q: On January 1, 2018, Nath-Langstrom Services, Inc
On January 1, 2018, Nath-Langstrom Services, Inc. a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasing, which routinely fin...
See AnswerQ: Chance Enterprises leased equipment from Third Bank Leasing on January 1,
Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2018. Chance purchased the equipment at a cost of $1,000,000. Chance elected the short-term lease option. Appropriate adjustin...
See AnswerQ: Natick Industries leased high-tech instruments from Framingham Leasing on January
Natick Industries leased high-tech instruments from Framingham Leasing on January 1, 2018. Natick has the option to renew the lease at the end of two years for an additional three years. Natick is sub...
See AnswerQ: Manufacturers Southern leased high-tech electronic equipment from International Machines on
Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2018. International Machines manufactured the equipment at a cost of $85,000. Manufacturers South...
See AnswerQ: Bidwell Leasing purchased a single-engine plane for its fair value
Bidwell Leasing purchased a single-engine plane for its fair value of $645,526 and leased it to Red Baron Flying Club on January 1, 2018. Terms of the lease agreement and related facts were: a. Eight...
See AnswerQ: On January 1, 2018, Wetick Optometrists leased diagnostic equipment from
On January 1, 2018, Wetick Optometrists leased diagnostic equipment from Southern Corp., which had purchased the equipment at a cost of $1,437,237. The lease agreement specifies six annual payments of...
See AnswerQ: On January 1, 2018, QuickStream Communications leased telephone equipment from
On January 1, 2018, QuickStream Communications leased telephone equipment from Digium, Inc. Digium’s cash selling price for the equipment is $1,306,578. The lease agreement specifies six annual paymen...
See AnswerQ: AI Tool and Dye issued 8% bonds with a face amount
AI Tool and Dye issued 8% bonds with a face amount of $160 million on January 1, 2018. The bonds sold for $150 million. For bonds of similar risk and maturity the market yield was 9%. Upon issuance, A...
See AnswerQ: On January 1, 2018, Taco King leased retail space from
On January 1, 2018, Taco King leased retail space from Fogelman Properties. The 10-year finance lease requires quarterly variable lease payments equal to 3% of Taco King’s sales revenue, with a quarte...
See AnswerQ: On January 1, 2018, Rick’s Pawn Shop leased a truck
On January 1, 2018, Rick’s Pawn Shop leased a truck from Corey Motors for a six-year period with an option to extend the lease for three years. Rick’s had no significant economic incentive as of the b...
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