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On January 1, 2021, BeachCo leased printing equipment from L…

Posted byAnonymous July 29, 2021February 2, 2023

Questions

On Jаnuаry 1, 2021, BeаchCо leased printing equipment frоm LeaseCоrp. LeaseCorp purchased the equipment from CompuDec Corporation at a cost of $479,079. BeachCo’s borrowing rate for similar transactions is 10%. The lease agreement specifies four annual payments of $100,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 from 2021 through 2023. The useful life of the equipment is estimated to be six years. The present value of those four payments at a discount rate of 10% is $348,685. The lease is correctly accounted for as an operating lease.  What amount of amortization of the Right of Use asset will BeachCo record for 2021?

On Jаnuаry 1, 2021, BeаchCо leased printing equipment frоm LeaseCоrp. LeaseCorp purchased the equipment from CompuDec Corporation at a cost of $479,079. BeachCo’s borrowing rate for similar transactions is 10%. The lease agreement specifies four annual payments of $100,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 from 2021 through 2023. The useful life of the equipment is estimated to be six years. The present value of those four payments at a discount rate of 10% is $348,685. The lease is correctly accounted for as an operating lease.  What amount of amortization of the Right of Use asset will BeachCo record for 2021?

On Jаnuаry 1, 2021, BeаchCо leased printing equipment frоm LeaseCоrp. LeaseCorp purchased the equipment from CompuDec Corporation at a cost of $479,079. BeachCo’s borrowing rate for similar transactions is 10%. The lease agreement specifies four annual payments of $100,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 from 2021 through 2023. The useful life of the equipment is estimated to be six years. The present value of those four payments at a discount rate of 10% is $348,685. The lease is correctly accounted for as an operating lease.  What amount of amortization of the Right of Use asset will BeachCo record for 2021?

On Jаnuаry 1, 2021, BeаchCо leased printing equipment frоm LeaseCоrp. LeaseCorp purchased the equipment from CompuDec Corporation at a cost of $479,079. BeachCo’s borrowing rate for similar transactions is 10%. The lease agreement specifies four annual payments of $100,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 from 2021 through 2023. The useful life of the equipment is estimated to be six years. The present value of those four payments at a discount rate of 10% is $348,685. The lease is correctly accounted for as an operating lease.  What amount of amortization of the Right of Use asset will BeachCo record for 2021?

On Jаnuаry 1, 2021, BeаchCо leased printing equipment frоm LeaseCоrp. LeaseCorp purchased the equipment from CompuDec Corporation at a cost of $479,079. BeachCo’s borrowing rate for similar transactions is 10%. The lease agreement specifies four annual payments of $100,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 from 2021 through 2023. The useful life of the equipment is estimated to be six years. The present value of those four payments at a discount rate of 10% is $348,685. The lease is correctly accounted for as an operating lease.  What amount of amortization of the Right of Use asset will BeachCo record for 2021?

On Jаnuаry 1, 2021, BeаchCо leased printing equipment frоm LeaseCоrp. LeaseCorp purchased the equipment from CompuDec Corporation at a cost of $479,079. BeachCo’s borrowing rate for similar transactions is 10%. The lease agreement specifies four annual payments of $100,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 from 2021 through 2023. The useful life of the equipment is estimated to be six years. The present value of those four payments at a discount rate of 10% is $348,685. The lease is correctly accounted for as an operating lease.  What amount of amortization of the Right of Use asset will BeachCo record for 2021?

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