chapter 14

24問 • 1年前

問題一覧

At the beginning of current year, Howe Company leased equipment to Kew Company for an eight-year period. Equal payments under the lease are P500,000 and are due at beginning of each year. The first payment was made at the beginning of current year. The selling price of the equipment is P2,900.000 and the carrying amount is P2,000.000. The lease is appropriately accounted for as a sales type lease. The present value of the lease payments at an implicit interest rate of 12% is P2,780,000. What amount of gross income on sale should be reported for the curent year?

780,000

Meg Company leased equipment to Wee Company on July 1, 2023 for an eight-vear period expiring June 30, 2031. Equal payments under the lease are P600,000 and are due on July 1 of each year. The first payment was made on July 1, 2023. The rate of interest contemplated by Meg Company is 10%. The cash selling price of the equipment is P3,520,000 and the carrying amount is P2,800,000. The lease is appropriately recorded as a sales type lease. What amount should be reported as gross income on sale for 2023?

720,000

146,000

Fox Company a dealer in machinery and equipment leased equipment to Tiger Can any on January 1, 2023. The lease is appropriately accounted for as a sale by Fox Company and as a purchase by Tiger Company. The lease is for a ten-year period equal to the useful life or the asset expiring December 31, 2032. The first of ten equal annual payments of PS00,000 was made on January 1, 2023. Fox Company had purchased the equipment for P2,675,000 and established a list selling price of P3,375,000 on the equipment. The present value on January 1, 2023 of the rent payments over the lease term discounted at 12% was P3, 165,000. What amount ofshould be reported as gross income on sale for 2023?

490,000

319,800

What amount should be reported as total unearned interest income?

4,630,000

What amount should be reported as gross income on sale?

3,070,000

What amount should be reported as interest income for current year?

1,364,400

What amount should be reported as total unearned interest income?

17,445,000

What amount should be reported as gross income on sale?

4,555,000

What amount should be reported as interest income for current year?

1,326,600

Marianas Company adopted the policy of leasing as the primary method of selling its products. The entity's main product is a smar helicopter. Marianas Company constructed such a helicopter for Jade Company at a cost of P8,500,000 with estimated residual value of P1,600.000. The terms of the lease provided for annual advance payments of P2,500,000 every January 1 to be paid over 10 years with the ownership transferring to the lessee at the end of the lease period Marianas Company incurred initial direct cost of P500,000. The cash sale price of the helicopter is P14,875,000. Financing the construction was at a 14% rate. The present value of an annuity due of 1 at 14% for 10 periods is 5.95. What amount should be reported as gross income on sale?

5,875,000

1,732,500

On January 1, 2023, Dexter Company leased equipment to another entity. The lease is for an eight-year period expiring December 31, 2030. The first of eight equal annual payments of P900,000 was made on January 1, 2023. Dexter Company had purchased the equipment for P4,800,000. The lease is appropriately accounted for as a sales type lease. The present value on January 1, 2023 of all rent payments over the lease term discounted at a 10% interest rate was P5,280,000. What amount of interest revenue should be recorded in 2023?

438,000

391,800

At the beginning of current year, Gallant Company entered into a 10-year lease agreement with Blacksheep Company for a machine which was carried in the accounting records of Gallant Company at P2,000,000. Total payments under the lease aggregate P3,550,800 of which P2,400,000 represents cost of the machine to Blacksheep Company. Payments of P355,080 are due in advance each January 1 of each year. The interest rate of 10% which was stipulated in the lease is considered fair and adequate compensation to Gallant Company for the use of its funds. Blacksheep Company expected the machine to have a 10-year life, no residual value and be depreciated on a straight line basis. The lease is conceived as a sales type lease. What amount should be recognized by Gallant Company as gross income from sale for the current year?

400,000

At the beginning of current year, Gallant Company entered into a 10-year lease agreement with Blacksheep Company for a machine which was carried in the accounting records of Gallant Company at P2,000,000. Total payments under the lease aggregate P3,550,800 of which P2,400,000 represents cost of the machine to Blacksheep Company. Payments of P355,080 are due in advance each January 1 of each year. The interest rate of 10% which was stipulated in the lease is considered fair and adequate compensation to Gallant Company for the use of its funds. Blacksheep Company expected the machine to have a 10-year life, no residual value and be depreciated on a straight line basis. The lease is conceived as a sales type lease. What amount should be recognized as interest income by Gallant Company for the current year?

204,492

At the beginning of current year, Gallant Company entered into a 10-year lease agreement with Blacksheep Company for a machine which was carried in the accounting records of Gallant Company at P2,000,000. Total payments under the lease aggregate P3,550,800 of which P2,400,000 represents cost of the machine to Blacksheep Company. Payments of P355,080 are due in advance each January 1 of each year. The interest rate of 10% which was stipulated in the lease is considered fair and adequate compensation to Gallant Company for the use of its funds. Blacksheep Company expected the machine to have a 10-year life, no residual value and be depreciated on a straight line basis. The lease is conceived as a sales type lease. What amount should be reported as pretax total income by Gallant Company from the lease for the current year?

604,492

At the beginning of curent year, Ultra Company leased equipmentio another entity under a sales type lease. Rentals are payable at the end of each year, beginning December 31 of the current year. The lease term is 6 years and the useful life of the equipment is 8 years. The fai value of tie equipment is P1,273,800 while the costs P800.000. The implicit rate in the lease is 12% which is known to the lessee. The lessce had the option to purchase the equipment for P80,000 at the end of the lease term. It is reasonably certain that the lessee will exercise the purchase option. The present value of 1 at 12% for 6 periods is 0.51 and the present value of an ordinary annuity at 12% for 6 periods is 4.11. What amount should be recognized as annual rental payment?

300,000

At the beginning of curent year, Ultra Company leased equipmentio another entity under a sales type lease. Rentals are payable at the end of each year, beginning December 31 of the current year. The lease term is 6 years and the useful life of the equipment is 8 years. The fai value of tie equipment is P1.273.800 while the costs P$00.000. The implicit rate in the lease is 12% which is known to the lessee. The lessce had the option to purchase the equipment for P80,000 at the end of the lease term. It is reasonably certain that the lessee will exercise the purchase option. The present value of 1 at 12% for 6 periods is 0.51 and the present value of an ordinary annuity at 12% for 6 periods is 4.11. What amount should be reported as total financial revenue?

606,200

At the beginning of curent year, Ultra Company leased equipmentio another entity under a sales type lease. Rentals are payable at the end of each year, beginning December 31 of the current year. The lease term is 6 years and the useful life of the equipment is 8 years. The fai value of tie equipment is P1.273.800 while the costs P$00.000. The implicit rate in the lease is 12% which is known to the lessee. The lessce had the option to purchase the equipment for P80,000 at the end of the lease term. It is reasonably certain that the lessee will exercise the purchase option. The present value of 1 at 12% for 6 periods is 0.51 and the present value of an ordinary annuity at 12% for 6 periods is 4.11. What amount should be reported as gross income from sale?

606,200

At the beginning of curent year, Ultra Company leased equipmentio another entity under a sales type lease. Rentals are payable at the end of each year, beginning December 31 of the current year. The lease term is 6 years and the useful life of the equipment is 8 years. The fai value of tie equipment is P1.273.800 while the costs P$00.000. The implicit rate in the lease is 12% which is known to the lessee. The lessce had the option to purchase the equipment for P80,000 at the end of the lease term. It is reasonably certain that the lessee will exercise the purchase option. The present value of 1 at 12% for 6 periods is 0.51 and the present value of an ordinary annuity at 12% for 6 periods is 4.11. What amount should be reported as interest income for the current year?

152,856

At the beginning of current year. Yolk Company signed a ten-year noncancelable lease agreement to lease a storage building to a lessee under a sales type lease. The agreement required equal rental payments at the end of each year. The fair value of the building is P3,075,000. However, the carrying amount of the building is P2,460,000. The building has an estimated economic life of 10 years with no residual value. At the termination of the leuse, the title to the building shall be transferred to the lessee. Yolk Company set the annual rental to insure a 10% rate of return. The implicit rate of the lessor is known by the lessee. The annual total lease payment included P100,000 of executory cost related to taxes on the property. The present value of an ordinary annuity of 1 at 10% for 10 periods is 6.15. What amount should be recognized as annual rental?

500,000

600,000

Quiz I.T Week 3

nicollette claire · 34問 · 2年前

Quiz I.T Week 3