Business, 30.08.2021 22:40 parbridg

On June 30, 2021, Georgia-Atlantic, Inc. leased warehouse equipment from Builders, Inc. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $512,709 over a five-year lease term (also the asset’s useful life), payable each June 30 and December 31, with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 12%, the same rate Builders used to calculate lease payment amounts. Builders manufactured the equipment at a cost of $3.5 million. Required:
a. Determine the price at which Builders is "selling" the equipment (present value of the lease payments) at June 30, 2021.
b. What amount related to the lease would Builders report in its balance sheet at December 31, 2021 (ignore taxes)?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 10:00

Scenario: you have advised the owner of bond's gym that the best thing to do would be to raise the price of a monthly membership. the owner wants to know what may happen once this price increase goes into effect. what will most likely occur after the price of a monthly membership increases? check all that apply. current members will pay more per month. the quantity demanded for memberships will decrease. the number of available memberships will increase. the owner will make more money. bond's gym will receive more membership applications.

Answers: 1

Answer

Business, 22.06.2019 17:40

Within the relevant range, if there is a change in the level of the cost driver, then a. total fixed costs will remain the same and total variable costs will change b. total fixed costs will change and total variable costs will remain the same c. total fixed costs and total variable costs will change d. total fixed costs and total variable costs will remain the same

Answers: 3

Answer

Business, 22.06.2019 20:00

Which of the following is a competitive benefit experienced by the first mover firm in an industry? a. the first mover will be able to achieve a less steep learning curve. b. the first mover will be able to reduce the switching costs. c. the first mover will not have to patent its products or technology. d. the first mover will be able to reduce costs through economies of scale.

Answers: 3

Answer

Business, 22.06.2019 22:00

Your sister turned 35 today, and she is planning to save $60,000 per year for retirement, with the first deposit to be made one year from today. she will invest in a mutual fund that's expected to provide a return of 7.5% per year. she plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. under these assumptions, how much can she spend each year after she retires? her first withdrawal will be made at the end of her first retirement year.

Answers: 3

Answer

You know the right answer?

On June 30, 2021, Georgia-Atlantic, Inc. leased warehouse equipment from Builders, Inc. The lease ag...

Questions