months is $1,180. (The present value at 1% per month is $715.)
Delaney Company guarantees the residual value of $1,180.4.
Estimated economic life of the automobile is 60 months.5. Delaney
Company’s incremental borrowing rate is 12% a year (1% a month).
Simon’s implicit rate is unknown. Instructions
(a) What is the nature of this lease to Delaney Company?
(b) What is the present value of the minimum lease payments?
(c) Record the lease on Delaney Company’s books at the date of
inception.
(d) Record the first month’s depreciation on Delaney Company’s
books (assume straight-line).
(e) Record the first month’s lease payment.
=========================================
ACC 537 Week 5 Assignment Securities (630 Words)
For more course tutorials visit
www.uophelp.com
Distinguish between a debt security and equity security
What purpose does the variety in bond features (types and
characteristics) serve?
What is meant by "Yield to Maturity"?
Identify and explain the three types of classifications for investments
in debt securities.
Conclusion
=========================================