Question

On January 1, 2021, Packard Corporation leased equipment to Hewlitt Company. The lease term is 12...

On January 1, 2021, Packard Corporation leased equipment to Hewlitt Company. The lease term is 12 years. The first payment of $453,000 was made on January 1, 2021. Remaining payments are made on December 31 each year, beginning with December 31, 2021. The equipment cost Packard Corporation $3,361,310. The present value of the lease payments is $3,395,263. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 10%, what will be the balance reported as a liability by Hewlitt in the December 31, 2022, balance sheet? (Round your final answer to nearest dollar.)

Multiple Choice

  • $2,608,838.

  • $2,783,489.

  • $2,348,838.

  • $2,942,263.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.Red Co. recorded a right-of-use asset of $180,000 in a 10-year finance lease. Payments of $29,294...
1.Red Co. recorded a right-of-use asset of $180,000 in a 10-year finance lease. Payments of $29,294 are made annually at the end of each year. The interest rate charged by the lessor was 10%. The balance in the lease payable after two years will be: (Round your final answer to nearest whole dollar.) 2.On January 1, 2018, Packard Corporation leased equipment to Hewlitt Company. The lease term is 11 years. The first payment of $453,000 was made on January 1,...
On January 1, 2021, Miller Company leased equipment from Alpha Louse Corp. Alphe Lease Corp purchased...
On January 1, 2021, Miller Company leased equipment from Alpha Louse Corp. Alphe Lease Corp purchased the equipment at a cost of $150.000. The agreement specified three payments of $50,000 beginning January 1, 2021, the beginning of the lense, and on each December 31 thereafter through 2022. The useful life of the equipment is estimated to be five years wor's implicit rate was 5%. The present value of those three payments at a discount rate of % is $142,971, On...
Francisco leased equipment from Julio on December 31, 2021. The lease is a 10-year lease with...
Francisco leased equipment from Julio on December 31, 2021. The lease is a 10-year lease with annual payments of $152,000 due on December 31 of each year beginning December 31, 2021. The present value of the lease payments is $1,063,278. Francisco's incremental borrowing rate is 11% for this type of lease. The implicit rate of 9% is known by the lessee. What should be the balance in Francisco lease liability at December 31, 2022? Multiple Choice $841,293. $911,278. $839,793. $847,803.
Francisco leased equipment from Julio on December 31, 2021. The lease is a 10-year lease with...
Francisco leased equipment from Julio on December 31, 2021. The lease is a 10-year lease with annual payments of $155,000 due on December 31 of each year beginning December 31, 2021. The present value of the lease payments is $1,123,268. Francisco's incremental borrowing rate is 10% for this type of lease. The implicit rate of 8% is known by the lessee. What should be the balance in Francisco lease liability at December 31, 2022? Multiple Choice $968,268. $897,239. $885,729. $890,729....
21. On January 1, 2018, Queen Corporation leased equipment to King Company. The lease term is...
21. On January 1, 2018, Queen Corporation leased equipment to King Company. The lease term is six years. The first payment of $800,000 was made on January 1, 2018. The equipment cost Queen Corporation $3,600,000. The present value of the lease payments is $3,994,168. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 8%, how much interest revenue will Queen record in 2019 on this lease? a. 211,976 b. 255,533 c. 281,096...
On January 1, 2018, Savor Corporation leased equipment to Spree Company. The lease term is 9...
On January 1, 2018, Savor Corporation leased equipment to Spree Company. The lease term is 9 years. The first payment of $698,000 was made on January 1, 2018. The present value of the lease payments is $4,561,300. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 9%, how much interest revenue will Savor record in 2018 on this lease?
On January 1, 2021, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease...
On January 1, 2021, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease designed to earn NRC a 10% rate of return for providing long-term financing. The lease agreement specified the following: Ten annual payments of $60,000 beginning January 1, 2021, the beginning of the lease and each December 31 thereafter through 2029. The estimated useful life of the leased equipment is 10 years with no residual value. Its cost to NRC was $354,849. The lease qualifies...
On January 1, 2021, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease...
On January 1, 2021, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease designed to earn NRC a 11% rate of return for providing long-term financing. The lease agreement specified the following: Ten annual payments of $67,000 beginning January 1, 2021, the beginning of the lease and each December 31 thereafter through 2029. The estimated useful life of the leased equipment is 10 years with no residual value. Its cost to NRC was $402,029. The lease qualifies...
On January 1, 2021, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease...
On January 1, 2021, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease designed to earn NRC a 11% rate of return for providing long-term financing. The lease agreement specified the following: Ten annual payments of $61,000 beginning January 1, 2021, the beginning of the lease and each December 31 thereafter through 2029. The estimated useful life of the leased equipment is 10 years with no residual value. Its cost to NRC was $346,464. The lease qualifies...
On January 1, 2021, Ran Fitness Inc. leased exercise equipment to Crunch Inc. The lease term...
On January 1, 2021, Ran Fitness Inc. leased exercise equipment to Crunch Inc. The lease term is 2 years. Payments of $16,500 are made at the beginning of every quarter for 2 years. The economic life of the equipment is also 2 years. The fair value of the equipment is $125,370. The implicit annual interest rate in the lease is 6%. What is the outstanding lease liability balance after the second payment
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT