Assume that IBM leased equipment that was carried at a cost of $193,000 to Ivanhoe Company. The term of the lease is 6 years December 31, 2019, with equal rental payments of $38,656 beginning December 31, 2019. The fair value of the equipment at commencement of the lease is $192,998. The equipment has a useful life of 6 years with no salvage value. The lease has an implicit interest rate of 8%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable. Assume the sales-type lease was recorded at a present value of $192,998. Prepare IBM's December 31, 2020, entry to record the lease transaction with Ivanhoe Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e. g. 5,275.)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assume that IBM leased equipment that was carried at a cost of $193,000 to Ivanhoe Company. The term of the lease is 6 years December 31, ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Normally, grant money is treated as gift aid that does not need to be paid back. Which of the following events would require a student to pay back the amount received as grant? A. if the student wins a lottery B.
Answers (2)
Of each dollar a consumer spends on food how much does the farmer receive?
Answers (1)
What is the major advantage of an LLP? a. It limits the personal liability of partners to only their own wrongful acts. b. It increases the liability of the partners. c. It allows the partnership to be taxed as a corporation.
Answers (1)
A cell phone manufacturing firm produced 1,000 cell phones a day but believed that it could reasonably top up production to 2,000 cell phones a day.
Answers (1)
Which of the following describes a positive externality? Select one: a. You buy a new jacket you really enjoy b. The government imposes a tax on cigarettes in order to discourage smoking among teenagers. c.
Answers (1)
New Questions in Business
In the context of foreign direct investment, a joint venture involves the merger of companies.
Answers (1)
Classify the following changes in each of the accounts as either an outflow or an inflow of cash. During the year (a) marketable securities increased, (b) land and buildings decreased, (c) accounts payable increased, (d) vehicles decreased, (e)
Answers (1)
In 2013, teller company sold 3,000 units at $400 each. variable expenses were $280 per unit, and fixed expenses were $160,000. what was teller's 2013 net income?
Answers (1)
A project that provides annual cash flows of $24,000 for 9 years costs $110,000 today. Under the IRR decision rule, is this a good project if the required return is 8 percent?
Answers (1)
Which of the following groups has the responsibility for identifying and deciding the appropriate accounting treatment for recording or disclosing contingent liabilities? A) Auditors B) Legal counsel C) Management D) Management and the auditors
Answers (1)