Brooks Company leases a machine from TCS Company on 1/1/23. Given:$100,000$85,000$20,711$5,000$8,0004%Asset FMVAsset Book ValueJanuary 1 paymentsGuaranteed Salvage ValueLessee expected salvage valueImplicit and incremental ratesFive-year lease; five-year assetDetermine the TCS Lease Receivable at 12/31/23.Select one:a. $79,289O b. $76,117c. $76,819d. $82,461e. $74,289

GIVEN Brooks Company leases a machine from TCS Company on 1/1/23 Asset FMV $100,000 Asset Book…

$100,000 $85,000 $20,711 $5,000 Lessee expected salvage value $8,000 4% Asset FMV Asset Book Value January 1 payments Guaranteed Salvage Value Implicit and incremental rates Five-year lease; five-year asset

$100,000 $85,000 $20,711 $5,000 Lessee expected salvage value $8,000 4% Asset FMV Asset Book Value January 1 payments Guaranteed Salvage Value Implicit and incremental rates Five-year lease; five-year asset

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Reardon Company leased an asset from Mackinac Company. Data: ● ● ● ● . Five-year, noncancellable lease begins 1/1/22. Asset life is five years Payments of $20,711 each January 1. Asset FMV $100,000; Lessor book value $85,000 Guaranteed salvage value $5,000; $1,500 salvage value expected by lessee Applicable rate is 4% Reardon's 12/31/22 Right of Use asset balance will be approximately Select one: O a. $79,259 O b. $78,923 O c. $76,712 O d. $79,013 Oe. $76,137
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