Class8 - more problems - 3,965 39,657 $319,622 $74,622...

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EXERCISE 21-10 (a) Fair market value of leased asset to lessor $245,000.00 Less: Present value of unguaranteed residual value $43,622 X .56447 (present value of 1 at 10% for 6 periods) 24,623.31 Amount to be recovered through lease payments $220,376.69 Six periodic lease payments $220,376.69 ÷ 4.79079* $46,000.00 ** *Present value of annuity due of 1 for 6 periods at 10%. **Rounded to the nearest dollar. (b) MORGAN LEASING COMPANY (Lessor) Lease Amortization Schedule Date Annual Lease Payment Plus URV Interest (10%) on Lease Receivable Recovery of Lease Receivable Lease Receivable 1/1/07 $245,000 1/1/07 $ 46,000 $ 46,000 199,000 1/1/08 46,000 $19,900 26,100 172,900 1/1/09 46,000 17,290 28,710 144,190 1/1/10 46,000 14,419 31,581 112,609 1/1/11 46,000 11,261 34,739 77,870 1/1/12 46,000 7,787 38,213 39,657 12/31/12 43,622
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Unformatted text preview: 3,965 39,657 $319,622 $74,622 $245,000 (c) 1/1/07 Lease Receivable. ................................. 245,000 Equipment. ..................................... 245,000 1/1/07 Cash. ....................................................... 46,000 Lease Receivable. ......................... 46,000 12/31/07 Interest Receivable. .............................. 19,900 Interest Revenue. .......................... 19,900 1/1/08 Cash. ....................................................... 46,000 Lease Receivable. ......................... 26,100 Interest Receivable. ....................... 19,900 12/31/08 Interest Receivable. .............................. 17,290 Interest Revenue. .......................... 17,290...
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This note was uploaded on 12/04/2009 for the course MGMT 351 taught by Professor Staff during the Spring '08 term at Purdue University-West Lafayette.

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Class8 - more problems - 3,965 39,657 $319,622 $74,622...

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