Business, 02.03.2020 22:55 gg808

Assume that on January 1, 2017, Kimberly-Clark Corp. signs a 10-year noncancelable lease agreement to lease a storage building from Sheffield Storage Company. The following information pertains to this lease agreement.

1. Equal rental payments, as required in the lease agreement, beginning on January 1, 2017 are $72,000.

2. Fair value of the building on January 1, 2017 was $440,000.

3. Estimated economic life of the building is 12 years. Unguaranteed residual value of the building is $10,000, Kimberly-Clark depreciates similar buildings on the straight-line method.

4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor.

5. Kimberly-Clark's annual incremental borrowing rate is 12% Lessor's implicit rate is not known by Kimberly-Clark.

6. Amount of executory costs included in the yearly rental payment is $2,471 Executory costs relate to taxes on the property.

Instructions:

Calculate the Present value of the lease payments and prepare a lease amortization table and the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2017 and 2018. Kimberly-Clark's corporate year-end is December 31

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 11:30

Amano s preguntes cationing to come fonds and consumer good 8. why did the u.s. government use rationing for some foods and consumer goods during world war ii?

Answers: 1

Answer

Business, 22.06.2019 14:10

When paul o’neill joined alcoa as ceo, he set a , that there would be zero workplace accidents. a lot of people in the organization thought this was impossible given how dangerous some aluminum-manufacturing jobs are, but alcoa’s safety record improved tremendously. as the board of governors of the american red cross considers planning, one option is to make strategic plans and then direct managers to align tactical and operational plans accordingly. another option is to have planning specialists managers across the organization make their own plans. why might this organization’s executives opt for the latter approach? check all that apply. (a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership. (b)resources will be better coordinated across the organization in support of the overall strategy.(c) senior leadership will have more control over the organization’s direction. (d)when managers come up with their own plans, they are likely to be more committed to following through on them.

Answers: 2

Answer

Business, 22.06.2019 17:30

Google started as one of many internet search engines, amazon started as an online book seller, and ebay began as a site where people could sell used personal items in auctions. these firms have grown to be so large and dominant that they are facing antitrust scrutiny from competition regulators in the us and elsewhere. did these online giants grow by fairly beating competition, or did they use unfair advantages? are there any clouds on the horizon for these firms -- could they face diseconomies of scale or diseconomies of scope as they continue to grow? if so, what factors may limit their continued growth?

Answers: 1

Answer

Business, 22.06.2019 18:10

Find the zeros of the polynomial 5 x square + 12 x + 7 by factorization method and verify the relation between zeros and coefficient of the polynomials

Answers: 1

Answer

You know the right answer?

Assume that on January 1, 2017, Kimberly-Clark Corp. signs a 10-year noncancelable lease agreement t...

Questions