Assuming the computer has an eleven-year life and will have, Ask an Expert

Accounting

Jack Sawyer is presently leasing a copier from John Office Equipment Company. The lease requires 11 annual payments of $3,500 at the end of each year and provides the leaser (John) with an 8% return on its investment. You may use the following 8% interest factors:
9 Periods 10 Periods 11 Periods

Future Value of 1 1.99900 2.15892 2.33164
Present Value of 1 .50025 .46319 .42888
Future Value of 12.48756 14.48656 16.64549
Ordinary Annuity of 1
Present Value of 6.24689 6.71008 7.13896
Ordinary Annuity of 1
Present Value of 6.74664 7.24689 7.71008
Annuity Due of 1

Instructions
(a) Assuming the computer has an eleven-year life and will have no salvage value at the expiration of the lease, what was the original cost of the copier to John?
(b) What amount would each payment be if the 11 annual payments are to be made at the beginning of each period?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M984587

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - anwer owns a rental home and is involved in

Question - Anwer owns a rental home and is involved in maintaining it and approving renters. During the year he has a net loss of $8,000 from renting the home. His other sources of income during the year are a salary of ...

Question - a company receives a 850 utility bill for the

Question - A company receives a $850 utility bill for the current month but does not plan to pay the bill until early next month. Record the receipt of the utility bill using (a) accrual-basis accounting and (b) cash-bas ...

Question - you would like to purchase a car with a list

Question - You would like to purchase a car with a list price of $30,000, and the dealer offers financing over a five-year period at 8%. If you decide to trade in your current car to help reduce the amount of financing r ...

Question each part should be supported with extensive text

Question: Each part should be supported with extensive text explaining and supporting the details of your plan. Part Two - List of financial goals (short, medium, and long-term) ? ?You should have a minimum of 3 for each ...

Question - c d rom has just given an insurance company

Question - C. D. Rom has just given an insurance company $35,500. In return, he will receive an annuity of $4,400 for 20 years. At what rate of return must the insurance company invest this $35,500 in order to make the a ...

Question - if a company purchases land for 1000000 paying

Question - If a company purchases land for $1,000,000, paying $400,000 cash and borrowing the remainder with a long term note payable. Please give explanation for understanding on how this transaction be reported on a st ...

Question - stewart company purchases store supplies for

Question - Stewart Company purchases store supplies for $2,700, paying 20% of the amount due in cash and agreeing to pay the balance at a later date. Required: What is the effect of this transaction on individual asset a ...

Question - harveys junk jewelry started business january 1

Question - Harvey's Junk Jewelry started business January 1, 2018, and uses the LIFO retail method to estimate ending inventory. Listed below is data accumulated for the year ended December 31, 2018: Cost Retail Beg Inv ...

Question - various financial ratios could be used to

Question - Various financial ratios could be used to analyse a company's financial performance and position. a) What ratios would you calculate to evaluate a company's profitability? Provide two examples of the ratios an ...

Assignment - fraud prevention and detection planyou went

Assignment - Fraud Prevention and Detection Plan You went back to your corporate controllership position with Dingwow Inc. Senior Management has assigned you as the team lead to develop a fraud prevention and detection p ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert