Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

ZZZ C. signed a lease agreement to use an equipment for 5 years with the payment of $10,000 (present value $43,295). The current market rate is 5% and the market value of the equipment is $45,000 with the useful life of 10 years.

In the first year of the lease contract, ZZZ Co. recorded SGA $20,000, no interest expense and Net Income $30,000 and tax rate was 40% using the Operating lease method.

However, the CPA firm reported that ZZZ should have used the capital lease method. What would be the correct Net Income using the capital lease method?

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M947669

Have any Question? 


Related Questions in Accounting Basics

Question 1 -jj industries is in the business of

Question 1 - JJ Industries is in the business of manufacturing large yachts. They have an agreement with one of their biggest customers that they will pay off their account of R18.5 million over the next three years, wit ...

Case study -you are auditing the financial report of best

Case Study - You are auditing the financial report of Best Living Supplies Ltd (Best Living Supplies) for the year ended 30 June 2016. Best Living Supplies sells a wide variety of household products to retail outlets. Al ...

Choose a manufacturing company as a basis for this

Choose a manufacturing company as a basis for this discussion. Select one of the following variances: • direct material price variance, • direct labor price variance, • direct material efficiency variance, • direct labor ...

Practice questionsthink of a business that you would like

Practice questions: Think of a business that you would like to start. Draw up a list of all the expenses the business would incur and indicate the source of the information you would need to calculate the figures for the ...

Classifying costs as materials labor or factory overhead

Classifying costs as materials, labor, or factory overhead Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead c ...

Accounting theory assignment-read the articles on study

Accounting Theory Assignment- Read the articles on study desk: Volkswagen The scandal explained Instructions This assignment is a research based essay where you are required to relate a practical example to accounting th ...

I need help with a t-chart account with the following1

I need help with a T-Chart Account with the following: 1. Received $10,000 contribution from Bill London, owner, in exchange for capital. 2. Paid utilities expense of $400. 3. Paid the liability from July 5 (Purchased eq ...

Case study assignmentthese notes will guide you in writing

Case study assignment These notes will guide you in writing a business letter to an accounting client. An effective letter meets your receiver's needs. In this case, it answers the client's questions in a clear, accurate ...

Review the form 10-k for the company selected for team

Review the Form 10-K for the company selected for team assignments Write a 1,050- to 1,400-word paper on the following: 1. Management's Report on Internal Control Over Financial Reporting 2. The Independent Registered Pu ...

Questionsq1 the largest current asset on waverly

Questions: Q1. The Largest current asset on Waverly Corporation's balance sheet is Short-Term Investments. The investments cost Waverly $8,660, and their market value is $9,000. Suppose Waverly holds the investments in t ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate