Excel_Project_4_James_Holliday - Name James Holliday...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Exercise 21-3, Page 1 of 2, 05/02/2011, 07:04:41 Name: James Holliday Exercise: Course: AC557 Date: 1/30/2011 1. The agreement requires equal rental payments of $90,000 beginning on January 1, 2011. 2. The fair value of the building on January 1, 2011, is $550,000 $10,000 Kimberly-Clark depreciates similar buildings on the straight-line method. 4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. 6. The yearly rental payment includes $3,088.14 of executory costs related to taxes on the property. Instructions: Capitalized amount of the lease: Yearly payment 90,000.00 Executory costs 3,088.14 Minimum annual lease payment 86,911.86 Use the Excel Present Value (=PV) formula to determine the present value. Jan 1, 11 Capital Leases 550,000.00 Lease Liability 550,000.00 Jan 1, 11 Executory Costs 3,088.14 Lease Liability 86,911.86 Cash 90,000.00 Dec 31, 11 Depreciation Expense 55,000.00 Accumulated Depreciation 55,000.00 Dec 31, 11
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/01/2011 for the course FINANCE 516 taught by Professor Anderson during the Spring '11 term at Keller Graduate School of Management.

Page1 / 2

Excel_Project_4_James_Holliday - Name James Holliday...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online