Business, 28.02.2021 17:30 myelee123

Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2013. The manufacturing cost of the computers was $17 million. This non-cancelable lease had the following terms:

â€¢
Lease payments: $3,002,038 semiannually; first payment at January 1, 2013; remaining payments at June 30 and December 31 each year through June 30, 2017.

â€¢
Lease term: 5 years (10 semi-annual payments)

â€¢
No residual value; no bargain purchase option

â€¢
Economic life of equipment: 5 years

â€¢
Implicit interest rate and lessee's incremental borrowing rate: 9% semi-annually

â€¢
Fair value of the computers at January 1, 2013: $21 million

Collectibility of the rental payments is reasonably assured, and there are no lessor costs yet to be incurred.
What is the interest revenue that Technoid would report on this lease in its 2013 income statement? (Round your answer to the nearest dollar.)
A) $0.
B) $3,115,234.
C) $1,579,821.
D)None of these is correct.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 10:30

6carla would like to buy a dress, a dresser for her bedroom, and a home theater system. she has one month's worth of living expenses in her emergency fund. carla decides to save for the home theater system. did carla make the right decision? why or why not? a. yes; her emergency fund is full and the other items will probably be less expensive. b. yes; she could save more for her emergency fund, but the home theater will be harder to save for. c. no; she should save more for her emergency fund because she has saved less than the recommended amount. d. no; she should have bought the dress and dresser first because she could afford them right away. reset next

Answers: 2

Answer

Business, 22.06.2019 17:50

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.

Answers: 3

Answer

Business, 22.06.2019 19:30

When it is 4: 00 a.m. in halifax, it is 1: 00 p.m. in karachi, and when it is 9: 00 a.m. in karachi, it is 5: 00 a.m. in warsaw. mary left halifax to fly to karachi, but she accidentally left her watch on warsaw time. according to mary’s watch, she left halifax at 9: 40 p.m. on monday. the local time when she arrived at karachi was 3: 00 p.m. tuesday. how long was mary’s flight? a. 9 hours, 20 minutes b. 13 hours, 20 minutes c. 14 hours, 20 minutes d. 17 hours, 20 minutes

Answers: 1

Answer

Business, 23.06.2019 02:40

James sebenius, in his harvard business review article: six habits of merely effective negotiators, identifies six mistakes that negotiators make that keep them from solving the right problem. identify which mistake is being described. the negotiator has neglected to consider the course of action he will take if the proposed deal is not possible.

Answers: 3

Answer

You know the right answer?

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

Questions