Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. montana corp. on dec 31, 2018 signed a 4 year nonc

Montana Corp. on Dec 31, 2018 signed a 4 year noncancelable lease for certain machinery....

90.2K

Verified Solution

Question

Accounting

Montana Corp. on Dec 31, 2018 signed a 4 year noncancelable lease for certain machinery. The terms of the lease called for Montana Corp. to make equal annual payments of $7000 at at the end of each year for 4 years, with title to pass to Montana Corp. at the end of this period. The machinery has an estimated useful life of 4 years and no salvage value. Montana Corp. uses the straight-line method of depreciation for all of its fixed assets. The effective interest rate for the lease was 10%. With respect to this lease, 0should record for 2019? | Periods: Present value at 10% | | 1: 0.9091 | 2: 0.8264 | 3: 0.7513 | 4: 0.683 | 5: 0.6209 | 6: 0.5645 | 7: 0.5132 | 8: 0.4665 | 9: 0.4241 | 10: 0.3855 | 11: 0.3505 | 12: 0.3186 | 13: 0.2897 | 14: 0.2633 | 15: 0.2394 | 16: 0.2176 | 17: 0.1978 | 18: 0.1799 | 19: 0.1635 | 20: 0.1486 | Periods: Present value Annuity at 10% | | 1: 0.9091 | 2: 1.7355 | 3: 2.4868 | 4: 3.1698 | 5: 3.7907 | 6: 4.3552 | 7: 4.8684 | 8: 5.3349 | 9: 5.759 | 10: 6.1445 | 11: 6.495 | 12: 6.8136 | 13: 7.1033 | 14: 7.3666 | 15: 7.606 | 16: 7.8236 | 17: 8.0214 | 18: 8.2013 | 19: 8.3648 | 20: 8.5134

What is the interest expense and depreciation expense?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

The world's smallest mammal is the bumblebee bat. The mean weight of 40 randomly selected bumblebee...

Statistics
1.2K views

A group of 9 friends includes 4 Americans, 2 Canadians, and 3 Italians. Three friends are...

Chemistry
1.2K views

A.) Mothballs are composed primarily of the hydrocarbon naphthalene (C10H8). When 1.025 g of naphthalene is...

Biology
1.2K views

Which is the mRNA complement of the DNA sequence 5’ ACGGTCGGAT 3’ 5’ ACGGTCGGAT 3’ 5’ AUCCGACCGU 3’ 5’...

Biology
1.2K views

Which of the following statements are correct with respect to protein synthesis?Check all that apply.The...

Biology
1.2K views

Which of the following will support viral cultivation Live lab animals Embryonated bird eggs Primary...

Basic Math
1.2K views

8 The part of a voltaic cell that allows ions to move between half cells...

Accounting
1.2K views

3. Compute the gross proir tor...

Accounting
1.2K views

In 2024, MSB anticipates that that it will have $30M M of...

Accounting
1.2K views

In Part 1 of the case, you performed preliminary analytical procedures for Pinnacle (pp. 257-259)....

Accounting
1.2K views

Consider the small economy represented in the following table. All values are in dollars. ...

Finance
1.2K views

The Gilbert Instrument Corporation is considering replacing the wood steamer it currently uses to shape...