Report as capitalized lease liability, Accounting Basics

+44 141 628 6080
[email protected]

Report as capitalized lease liability

N Corp. entered into a nine-year capital lease on a warehouse on December 31, 2011. Lease payments of $26,000, which includes real estate taxes of $1,000, are due annually, beginning on December 31, 2012, and every December 31 thereafter. Neal does not know the interest rate implicit in the lease; N's incremental borrowing rate is 9%. The rounded present value of an ordinary annuity for nine years at 9% is 6.0. What amount should N report as capitalized lease liability at December 31, 2011?

a. $150,000.

b. $156,000.

c. $225,000.

d. $234,000.

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Report as capitalized lease liability

Reference No:- TGS071781

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Accounting Basics

Q : Appropriate number of shares used in the basic earning share

On September 30, 2011, 12,000 shares of common stock were reacquired as treasury stock. What is the appropriate number of shares to be used in the basic earnings per share computation for 2011?

Q : Changes in retained earnings

Assuming the only changes in retained earnings in 2011 were for net income and a $50,000 dividend, what was net income for 2011?

Q : Paid-in capital-excess of par increase for transaction

Mitchell's usual billing rate is $700 per hour, and Fink's stock has a book value of $250 per share. By what amount will Fink's Paid-in capital-excess of par increase for this transaction?

Q : Balance of a treasury stock account

Coy, Inc. initially issued 200,000 shares of $1 par value stock for $1,000,000 in 2009. In 2010, the company repurchased 20,000 shares for $200,000. In 2011, 10,000 of the repurchased shares were resold for $160,000. In its balance sheet dated Dec

Q : Report as capitalized lease liability

The rounded present value of an ordinary annuity for nine years at 9% is 6.0. What amount should N report as capitalized lease liability at December 31, 2011?

Q : Create a future taxable amount

Which of the following circumstances creates a future taxable amount?

Q : Creating a future taxable amount

Which of the following circumstances creates a future taxable amount?

Q : Determining the pretax accounting income

Bumble Bee Co. had taxable income of $7,000, MACRS depreciation of $5,000, book depreciation of $2,000, and accrued warranty expense of $400 on the books although no warranty work was performed. What is Bumble Bee's pretax accounting income?

Q : Report as current income tax payable

There were no other deferred income taxes in any year. In 2010, Peridot elected to carry back its operating loss. The enacted income tax rate was 40%. In its 2011 income statement, what amount should Peridot report as current income tax payable?

1957124

Questions
Asked

3,689

Active Tutors

1452895

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Report as capitalized lease liability

Reference No:- TGS071781

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Appropriate number of shares used in the basic earning share

Q : Changes in retained earnings

Q : Paid-in capital-excess of par increase for transaction

Q : Balance of a treasury stock account

Q : Report as capitalized lease liability

Q : Create a future taxable amount

Q : Creating a future taxable amount

Q : Determining the pretax accounting income

Q : Report as current income tax payable

Who is a cultural broker

Statements best describes cause of recent political division

Why many people say that crime is everywhere

How class, culture, gender, and socio-economic status affect

Create a fictitious student

Locate article about current event related to crime-violence

How the film intersects with the course materials

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Report as capitalized lease liability

Reference No:- TGS071781

Recent Questions Asked Accounting Basics

Q : Appropriate number of shares used in the basic earning share

Q : Changes in retained earnings

Q : Paid-in capital-excess of par increase for transaction

Q : Balance of a treasury stock account

Q : Report as capitalized lease liability

Q : Create a future taxable amount

Q : Creating a future taxable amount

Q : Determining the pretax accounting income

Q : Report as current income tax payable

Asked Questions