On 1/1//2018, XYZ leases a machine from Super LeaseCo for two years. The estimated economic life of the machine is 5 years. At the end of the two-years, XYZ must return the machine to Super LeaseCo. XYZ has agreed to guarantee Super LeaseCo that the residual value at that time will be at least $4,000. The annual lease payment is $5,000 per year and are payable at the BEGINNING of each year (assume payments are made on 1/1/18 and 12/31/18). Assume both parties use straight-line depreciation and/or amortization and that the estimated salvage value of the machine after five years is zero.

Super LeaseCo is a financing company and uses an implicit rate of 6% to compute the annual lease payments and the Super LeaseCo paid $13,277 to purchase the machine. Super LeaseCo believes that it will have no difficulty reselling the used machine for $4,000.

XYZ’s incremental borrowing rate is also 6% and also estimates that the fair value of the machine is also $13,277. However, XYZ believes that the expected value of the machine after two years will be only $3,500 and therefore, expects to pay an additional $500 under the guarantee.

Required -

Part 1 - Prepare all required journal entries for XYZ and Super LeaseCo for 2018 and 2019. You should assume that the actual value of machine on 12/31/19 was $3,300 (Round all numbers to the nearest dollar)

Part 2 - Now assume that SuperLeaseCo is an equipment dealer and that the paid only 12,100 for the machine. What entry will SuperLeaseCo record on 1/1/18?

Part 3 - Now assume that the residual value in this problem was not guaranteed by XYZ. Prepare all required journal entries for XYZ and SuperLeaseCo for 2018. Do not do 2019.

Which of the following statements is true about financial planning

This problem has been solved! see the answerchapter 19 problem #8. quality and financial control (connect, perform)part one: geometrica designs and builds domes and space frames for large buildings. while the company had developed quality standards over time to respond to different client problems and training needs, it lacked a unified quality system, and its global client base wanted assurance that geometrica met an established international standard for quality. which of the following was an appropriate step for this company to take? a) reform its accounting and financial reporting systems to comply with sarbanes-oxleyb) establish and document a quality management system to comply with iso 9000management at workyou are the new fleet manager at xpressship, a package delivery company. as your first project, your boss has asked that you to look into implementing an electronic monitoring system for the fleet of 2,000 trucks your company owns. a recent internal audit on maintenance and repair costs on the company’s vehicles revealed while maintenance was performed regularly on the trucks, mileage or use had not been taken into account. this resulted in approximately $20,000 of unneeded repairs. you know that telematics have been used by other companies with fleets of cars or trucks and it will allow your company to not only track mileage and use, but also part replacement needs, vehicle oil pressure, and drivers’ speed and real time location. tracking these items can reduce maintenance costs while improving efficiency. you find that a simple computer can be installed in each vehicle. when the drivers return at the end of the day, the telematics information from each vehicle will be uploaded to a master computer where a software program will generate a report with results on the variables you have selected.early one morning as you are getting a cup of coffee, a few drivers that have been with the company for many years approach you with some concerns. eldon, the most senior driver says, “i heard you’re installing some type of computer to track our driving. my buddy works over at parcel and post package delivery and he said they’ve got these computers, too. he said managers are writing people up and firing drivers for speeding or not wearing seat belts. are you going to do that to us, too? ”part two: as a manager, which of the following statements would be effective in maintaining a positive relationship with company drivers? check all that apply.a) at this time, xpressship will be using telematics to monitor maintenance and repair needs, not drivers’ motoring habitsb) although the company isn’t doing so now, when xpressship begins to monitor driver motoring habits, the company will encourage them to keep a separate daily log where they can document any unusual circumstancesc) while xpressship could monitor things like speed, location, and idle time, the company trusts their drivers and will not be using that data in disciplinary decisionsd) xpressship executives are happy with their technology and believe that implementation is ideal for your organization

Suppose portugal has 700 workers and 26,000 units of capital, and france has 18,000 workers and 700 units of capital. technology is identical in both countries. assume that wine is the capital-intensive good and cloth is the labor-intensive good. which of the following statements is correct if the nations start trading with each other? a) wages will increase in portugal.b) rental rates in france will increase.c) wages in france will decrease.d) rental rates in portugal will increase.