Business, 07.04.2020 20:09 tatilynnsoto17

Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost of the computers was $12 million. This noncancelable lease had the following terms:Lease payments: $3,550,809 semiannually; first payment at January 1, 2018; remaining payments at June 30 and December 31 each year through June 30, 2022.

Lease term: 5 years (10 semi-annual payments).

No residual value; no purchase option.

Economic life of equipment: 5 years.

Implicit interest rate and lessee's incremental borrowing rate: 10% semiannually.

Fair value of the computers at January 1, 2018: $24 million.

What is the outstanding balance of the lease liability in Lone Star's June 30, 2018, balance sheet?

No 2.

Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost of the computers was $12 million.

This noncancelable lease had the following terms:

Lease payments: $2,466,754 semiannually; first payment at January 1, 2018; remaining payments at June 30 and December 31 each year through June 30, 2022.

Lease term: five years (10 semiannual payments).

No residual value; no purchase option.

Economic life of equipment: five years.

Implicit interest rate and lessee's incremental borrowing rate: 5% semiannually.

Fair value of the computers at January 1, 2018: $20 million.

What is the outstanding balance of the lease liability in Lone Star's June 30, 2018, balance sheet?

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Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2...

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