Question

Abbott Equipment leased a protein analyzer to Werner Chemical Inc. on September 30,2018. Abbott purchased the...

Abbott Equipment leased a protein analyzer to Werner Chemical Inc. on September 30,2018. Abbott purchased the machine from NutraLabs,inc. at a cost of $6.5 million. The five-year lease agreement calls for Werner to make quarterly lease payments of $424,177 payable each September 30, December 31, March 31, June 30, with the first payment at September 30h,2018. Abbott's implicit interest rate is 16%.

What pretax amounts related to the lease would Abbott report in its statement of cash flows for the year ended December 31 2018?

Finance Lease= ????

Interest Portion= ????

Principle Portion= ????

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

please comment down for any further assistance.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Abbott Equipment leased a protein analyzer to Werner Chemical Inc. on September 30,2018. Abbott purchased the...
Abbott Equipment leased a protein analyzer to Werner Chemical Inc. on September 30,2018. Abbott purchased the machine from NutraLabs,inc. at a cost of $6.5 million. The five-year lease agreement calls for Werner to make quarterly lease payments of $424,177 payable each September 30, December 31, March 31, June 30, with the first payment at September 30h,2018. Abbott's implicit interest rate is 16%. What pretax amounts related to the lease would Abbott report in its statement of cash flows for the...
Wilson Foods Corporation leased a commercial food processor on September 30, 2018. The five-year finance lease...
Wilson Foods Corporation leased a commercial food processor on September 30, 2018. The five-year finance lease agreement calls for Wilson to make quarterly lease payments of $234,929, payable each September 30, December 31, March 31, June 30, with the first payment at September 30, 2018. Wilson’s incremental borrowing rate is 12%. Wilson records depreciation on a straight-line basis at the end of each fiscal year. Wilson recorded the lease as follows: September 30, 2018 Right-of-use asset (calculated below) 3,600,000 Lease...
On June 30, 2018, Georgia-Atlantic, Inc., leased warehouse equipment from IC Leasing Corporation. The lease agreement...
On June 30, 2018, Georgia-Atlantic, Inc., leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $736,771 over a four-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2018. Georgia-Atlantic’s incremental borrowing rate is 10%, the same rate IC used to calculate lease payment amounts. IC purchased the warehouse from Builders, Inc.. at a cost of $5.0 million. Required: 1. What pretax amounts...
Wilson Foods Corporation leased a commercial food processor on September 30, 2021. The five-year finance lease...
Wilson Foods Corporation leased a commercial food processor on September 30, 2021. The five-year finance lease agreement calls for Wilson to make quarterly lease payments of $182,722, payable each September 30, December 31, March 31, June 30, with the first payment at September 30, 2021. Wilson’s incremental borrowing rate is 12%. Wilson records amortization on a straight-line basis at the end of each fiscal year. Wilson recorded the lease as follows: September 30, 2021 Right-of-use asset (calculated below) 2,800,000 Lease...
Franklin, Inc. leased equipment from Juniper Co. on December 31, 2018. The lease meets the criteria...
Franklin, Inc. leased equipment from Juniper Co. on December 31, 2018. The lease meets the criteria of a finance lease under the new lease accounting standard. The lease requires annual payments of $150,000 due on December 31 of each year, beginning December 31, 2018. The present value of the lease payments is $1,020,000. The interest rate implicit in the lease is 8%. Of the payment due on December 31, 2019, how much will Franklin record as interest expense? (Round to...
On June 30, 2018, Georgia-Atlantic, Inc., leased warehouse equipment from IC Leasing Corporation. The lease agreement...
On June 30, 2018, Georgia-Atlantic, Inc., leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $468,683 over a five-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2018. Georgia-Atlantic’s incremental borrowing rate is 10%, the same rate IC used to calculate lease payment amounts. IC purchased the warehouse from Builders, Inc.. at a cost of $3.8 million. (FV of $1, PV of...
On June 30, 2018, Georgia-Atlantic, Inc., leased warehouse equipment from IC Leasing Corporation. The lease agreement...
On June 30, 2018, Georgia-Atlantic, Inc., leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $414,921 over a five-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2018. Georgia-Atlantic’s incremental borrowing rate is 8%, the same rate IC used to calculate lease payment amounts. IC purchased the warehouse from Builders, Inc.. at a cost of $3.5 million. (FV of $1, PV of...
On June 30, 2018, Georgia-Atlantic, Inc., leased warehouse equipment from IC Leasing Corporation. The lease agreement...
On June 30, 2018, Georgia-Atlantic, Inc., leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $545,210 over a four-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2018. Georgia-Atlantic’s incremental borrowing rate is 10%, the same rate IC used to calculate lease payment amounts. IC purchased the equipment from Builders, Inc.. at a cost of $3.7 million. (FV of $1, PV of...
Herman Labs leased chronometers from Beaver Instruments on January 1, 2018 under a four-year lease agreement...
Herman Labs leased chronometers from Beaver Instruments on January 1, 2018 under a four-year lease agreement in a finance lease. The lease agreement specifies quarterly payments of $11,000 beginning January 1, 2018, the beginning of the lease, and at March 31, June 30, September 30, and December 31 thereafter. Beaver Instruments manufactured the chronometers at a cost of $120,000. The chronometers have a fair value of $150,000, with economic life of six years. Estimated residual value at the end of...
On June 30, 2018, Hercule, Inc. leased warehouse equipment from Marble, Inc. The lease agreement calls...
On June 30, 2018, Hercule, Inc. leased warehouse equipment from Marble, Inc. The lease agreement calls for Hercule to make semiannual lease payments of $1,688,721 over a three-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2018. Hercule's incremental borrowing rate is 10%, the same rate Marble used to calculate lease payment amounts. Marble manufactured the equipment at a cost of $7.5 million. Present value factor of an annuity due of $1:...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT