Ask Question, Ask an Expert


Ask Accounting Basics Expert

On December 31, 2014, Pacific Rail Corporation leased a train car from Southern Transportation Company for a ten year period expiring December 30, 2024. Equal annual payments of $160,000 are due on December 31 of each year, beginning with December 31, 2014. The lease is properly classified as a capital lease on Pacific Rail's books. The present value at December 31, 2013 of the ten lease payments over the lease term discounted at 8% is $1,159,502. Assuming the first payment is made on time, the amount that should be reported by Pacific Rail Corporation as the lease liability on its December 31, 2014 balance sheet is:

a) $1,440,000

b) $1,159,502

c) $1,066,742

d) $999,502

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M947438

Have any Question? 

Related Questions in Accounting Basics

Identify and explain the inventory asset and cost flows of

Identify and explain the inventory asset and cost flows of a merchandising company. Provide examples.

In the citation schusters express inc 66 tc 588 1976 affd

In the citation Schuster's Express, Inc., 66 T.C. 588 (1976), aff'd 562 F.2d 39 (CA-2, 1977), nonacq., to what do the 66, 39, and nonacq. refer? • Is there an automatic right to appeal to the U.S. Supreme Court? If so, w ...

Management accounting - farnsworths fine furniture

Management Accounting - Farnsworth's Fine Furniture Ltd Question 1 - (a) Prepare a new profit statement for Fred, using a variable costing approach (Also known as marginal costing, or the contribution margin approach). Y ...

Practice questionsindicate which of the following costs

Practice questions: Indicate which of the following costs that are incurred in a manufacturing company are production costs, selling and distribution costs or administration costs: • Motor vehicles' licences • Depreciati ...

Pinciples of accounting5-6 pages body of paper only

Pinciples of Accounting 5-6 pages (Body of Paper only) Excluding title page and work cite You will select a company from this list, and you will analyze the company's financial performance, highlighting accounting princi ...

1 k limited provided the following information as on

1. K Limited provided the following information as on 31.3.2009 Particulars Rs. Rs. Share capital: 2,50,000 equity shares of Rs. 10 each.   25,00,000 Profit & Loss a/c   3,50,000 Land & Building 12,00,000   Plant & Machi ...

Reference example example in text citation she stated

Reference example: Example : In text citation : She stated, "Students often had difficulty using APA style" (Jones, 1998, p. 199), Reference citation: Bernstein, M. (2002). 10 tips on writing the living Web. A List Apart ...

Accounting exercise1 your business sold 6000 in services

Accounting Exercise 1. Your business sold $6,000 in services this month. Your one employee who provided some of the service was paid $12.00 per hour and worked 80 hours during the month pius 7.62%Wpri Taxes. "Them were n ...

Horizontal and vertical analysisfor this assignment due in

Horizontal and Vertical analysis For this assignment, due in Module Four, you will submit both a horizontal and vertical analysis of Starbucks' accounts receivable, fixed assets, and debt financing. Use basic financial a ...

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 ...

  • 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