Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 402 Weeks Ago, 3 Days Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 26 Jul 2017 My Price 7.00

Mackey Company

Mackey Company acquired equipment on January 1, 1999, through a leasing agreement that required an annual payment of $30,000. Assume that the lease has a term of five year and that life of the equipment is also five years. The lease is treated as a capital lease, and the FMV of the equipment is $119,781. Mackey uses the straight-line method to depreciate its fixed assets. The effective annual interest rate on the lease is 8 percent.

Required:

a. Compute the amounts that would complete the table:

Balance Sheet LeaseHold Interest Depreciation Total

Date Value of Equipment Obligation Expense Expense Expense

1/1/99

12/31/99

12/31/00

12/31/01

12/31/02

12/31/03

b. Compute rent expense for 1999-2003 if the lease is treated as an operating lease.

c. Compute total expense over the 5-year period under the two methods and comment.

d. How would the debt-to-equity ratio (long-term debt/total equity) be affected by the accounting treatment (capital/operating) of the lease?

Answers

Maurice Tutor
(5)
Status NEW Posted 26 Jul 2017 02:07 PM My Price 7.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- Â-----------  -----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------sol-----------uti-----------on.-----------Ple-----------ase----------- pi-----------ng -----------me -----------on -----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be----------- ca-----------tch-----------

Not Rated(0)
Relevent Questions