What is the net rent income for the current year? * a. 275,000 b. 290,000 c. 350,000 d. 365,000
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*see attached
What is the net rent income for the current year? *
a. 275,000
b. 290,000
c. 350,000
d. 365,000
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- Please answer in good accounting form. Thanks! On January 1, 2020, EEE Corp. leased a warehouse for 5 years at an annual rental of ₱575,000 payable every December 31. The equipment had an estimated life of 8 years and shall revert back to the lessor at the expiration of the lease term. The lessee paid the lessor a lease bonus of ₱250,000 and was also responsible as per the lease agreement to pay the broker fees and commission amounting to ₱180,000. As an incentive however, the lessor shall reimburse EEE Corp. 75% of the said initial direct cost. The implicit lease rate known to both parties was at 12% while EEE Corporation’s incremental borrowing rate was at 10%.Requirements: (Use a PV FACTOR rounded off to 4 decimal places) 8. Depreciation expense on the Right of Use Asset in 2020 (under Straight Line Method)9. Carrying value of the Right of Use Asset as of December 31, 2021Please answer in good accounting form. Thanks! On January 1, 2020, EEE Corp. leased a warehouse for 5 years at an annual rental of ₱575,000 payable every December 31. The equipment had an estimated life of 8 years and shall revert back to the lessor at the expiration of the lease term. The lessee paid the lessor a lease bonus of ₱250,000 and was also responsible as per the lease agreement to pay the broker fees and commission amounting to ₱180,000. As an incentive however, the lessor shall reimburse EEE Corp. 75% of the said initial direct cost. The implicit lease rate known to both parties was at 12% while EEE Corporation’s incremental borrowing rate was at 10%.Requirements: (Use a PV FACTOR rounded off to 4 decimal places)5. Initial cost of the Right of Use Asset6. Interest expense for 20207. Carrying value of the Lease Liability as of December 31, 2021At the beginning of current year, JadeCompany purchased a new machine forP4,800,000 and leased it to East the same day.The machine has an estimated 12-year life andwill be depreciated P400,000 per year. The leaseis for a three-year period at an annual rental ofP850,000.Additionally, East paid P300,000 to Jade as alease bonus to obtain the three-year lease. Jadeincurred insurance expense of P80,000 for theleased machine during the current year.What is the operating profit of the lessor on theleased asset for the current year?
- At the beginning of current year, Jimbie Company, as lessor, leased an equipment for ten years at an annual rental of P 1,200,000, payable by Buggy Company, the lessee, at the beginning of each year. The lease is appropriately accounted for as finance lease. The equipment had a cost of P 8,400,000 with an estimated life of 12 years and no residual value. The straight line depreciation is used. The implicit rate is 9%. What amount of interest income should be reported in the income statement for the current year? Show your solution.A warehouse was bought for PHP 10,000,000 downpayment and 15 quarterly payment of PHP 3,120,000 each. The first installment is due at the end of 5 years the cash value of the property? O PHP 30,262,405.06 O PHP 46,190,751.88 O PHP 12,798,171.09 O PHP 30,622,405.06 O None of the aboveThe Arcade Company entered into a 10 year lease under which it made payments of R26 720 annually in advance.Arcade's borrowing rate was 10% per annum. The present value of the land was R125 000 and that of the buildings wasR125 000. The value of the land at the end of 10 years was R167 500 and the value of the buildings was R32 500. The landwould be classified as_______.Select one:a.an accounting leaseb.a finance leasec.a financial leased.an operating lease
- Atty. Santa agreed to sell their condominium unit to a campanera worth 2.4 million pesos in two payment schedule: On the first 5 months, the price of the unit is amortized at 3% quarterly. The balance amount will be paid at 4% semiannually for 7 months. Prepare the amortization schedule. Amortization schedule content: Date, beg bal, payment, interest, principal, and end balA Co. recorded a right-of-use asset of $400,000 in a 10-year operating lease. Payments of $65,100 are made annually at the end of each year. The interest rate charged by the lessor was 10%. The balance in the right-of-use asset after the first year will be: a. $376,900. b. $374,900. c. $360,000. d. $400,000.On January 1, 2020, EF Corp. leased an equipment for 5 years at semi-annual rental of ₱325,000 payable every June 30 and December 31. The equipment had an estimated useful life of 7 years. EF Corp. has an option to purchase the equipment from the lessor by paying the lessor ₱200,000 at the lease expiration date. The lessee paid lease bonus amounting to ₱280,000 and direct lease expense which included installation and commissioning costs amounting to ₱125,000. The lessor will however reimburse EF Corp. 15% of the direct lease expense as a lease incentive.The annual implicit lease rate on the lease known to both parties at the lease inception was at 10% while the incremental borrowing rate of the EF Corp. was at 12%. The asset had an estimated salvage value of ₱100,000 after 5 years and ₱60,000 after 7 years.Requirements: If at lease inception, EF Corp. is reasonably certain to exercise the purchase option: (Use a PV FACTOR rounded off to 4 decimal places) Entry to record the…
- On January 1, 2020, EF Corp. leased an equipment for 5 years at semi-annual rental of ₱325,000 payable every June 30 and December 31. The equipment had an estimated useful life of 7 years. EF Corp. has an option to purchase the equipment from the lessor by paying the lessor ₱200,000 at the lease expiration date. The lessee paid lease bonus amounting to ₱280,000 and direct lease expense which included installation and commissioning costs amounting to ₱125,000. The lessor will however reimburse EF Corp. 15% of the direct lease expense as a lease incentive.The annual implicit lease rate on the lease known to both parties at the lease inception was at 10% while the incremental borrowing rate of the EF Corp. was at 12%. The asset had an estimated salvage value of ₱100,000 after 5 years and ₱60,000 after 7 years. Requirements: If at lease inception, EF Corp. is reasonably certain to exercise the purchase option: (Use a PV FACTOR rounded off to 4 decimal places) 10. Initial cost of the Right…On January 1, 2021, Veronica Company negotiated a 15-year lease for a building with useful life of 20 years. Before occupancy, the lessee incurred leasehold improvement of P600,000 with useful life 5 years. The lessee is required to restore the building upon expiration of the lease. The present value of estimated cost of restoration is P644,000 discounted at 7%. Annual payments of P1,000,000 are payable to the lessor on December 31 of each of the 15 years of the lease term. The lease was negotiated to assure the lessor a 10% rate of return. PV of an ordinary annuity of 1 at 10% for 15 periods PV of an annuity of 1 in advance at 10% for 15 periods 7.606 8.367 Required: Prepare journal entries on the books of Veronica Company for 2021.16. On January 1, 2020, Roque Company purchased a new machine for P6,000,000 for the purpose of leasing it. Themachine had an estimated 10-year life. On April 1, 2020, the Roque leased the machine to a lessee for threeyears at a monthly rental of P400,000. The lessee paid the rental for one year of P4,800,000 on April 2020 andadditionally paid P600,000 to the lessor as a lease bonus to obtain the three-year lease. On April 1, 2020, Roquepaid P100,000 to a broker as a finder fee.What is the net rental income of Roque Company for 2020?
