ACT3392SpringTraditionalHWCh21 - HOMEWORK - SPRING 2010 ALL...

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HOMEWORK - SPRING 2010 ALL homework assignments must be completed by using some type of computer software program, e.g., word, excel. YOU WILL NOT RECEIVE FULL CREDIT FOR THE HOMEWORK UNLESS IT IS COMPLETED BY USING A COMPUTER. NO CREDIT WILL BE GIVEN FOR LATE HOMEWORK. When completing your homework assignments DO NOT use any abbreviations, e.g., spell out Governmental Accounting Standards Board instead of simply writing GASB. As discussed during class, you can work on these homework assignments in groups or as an individual. 1. (4 points) On January 1, 2011, Hernandez signed a ten-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $150,000 starting on 12-31-2011. Title passes to Hernandez at the expiration of the lease. The drill press has an estimated useful life of 15 years, with no salvage value. Hernandez uses straight-line depreciation for all of its plant assets and uses the effective- interest method of amortization. Hernandez’s incremental borrowing rate is 10% on January 2, 2011. a.
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This note was uploaded on 02/21/2011 for the course ACCT 3392 taught by Professor Dr.terpin during the Spring '10 term at Troy.

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ACT3392SpringTraditionalHWCh21 - HOMEWORK - SPRING 2010 ALL...

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