Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1,...
80.2K
Verified Solution
Link Copied!
Question
Accounting
| Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2013. The manufacturing cost of the computers was $20 million. |
| This non-cancelable lease had the following terms: |
| Lease payments: $3,311,766 semiannually; first payment at January 1, 2013; remaining payments at June 30 and December 31 each year through June 30, 2017. | |
| Lease term: 5 years (10 semi-annual payments) | |
| No residual value; no bargain purchase option | |
| Economic life of equipment: 5 years | |
| Implicit interest rate and lessee's incremental borrowing rate: 8% semi-annually | |
| Fair value of the computers at January 1, 2013: $24 million |
| Collectibility of the rental payments is reasonably assured, and there are no lessor costs yet to be incurred. | |||||||
| What is the interest revenue that Technoid would report on this lease in its 2013 income statement? (Round your answer to the nearest dollar.)
|
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.