Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 6. on 1/1/2018, rolly co leased a warehouse to ahv

6. On 1/1/2018, Rolly Co leased a warehouse to Ahvi Co under an operating lease...

90.2K

Verified Solution

Question

Accounting

image
6. On 1/1/2018, Rolly Co leased a warehouse to Ahvi Co under an operating lease for ten years at $80,000 per year, payable the first day of each lease year. During 2018, the following events occurred for Rolly On 1/1/2018, paid $36,000 to a real estate broker as a finder's fee. Depreciated the warehouse at $20,000 per year. Incurred insurance and property tax expense totaling $15,000 Rolly's 2018 net rental income from this contract will be? A $ 9,000 B. $41,400 C. $44,000 D. $45,000 7, Lease Y does not contain a bargain purchase option but the lease term is equal to 90% of the estimated economic life of the leased property Lease Z does not transfer ownership of the property to the lessee by the end of the lease term, but the lease term is equal to 75% of the estimated economic life of the leased property Both leases are non-cancelable. How should the lessee classify these leases? Lease Z Lease Y Operating lease Capital lease Capital lease Operating lease A. Capital lease B. Capital lease perating lease lease capital leases, executory costs incurred A Become part of the cost of leased assets B. Are expensed immediately upon payment C. Are deferred expenses until the end of the lease term D. All of the above are possble

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

Q

***** A Ferris wheel is 25 meters in diameter and boarded from a platform that is 1...

Basic Math
Q

Pyridine (C5H5N) is a particularly foul-smelling substance used in manufacturing pesticides and plastic resins. Calculate the pH...

Chemistry
Q

A sheet metal with a thickness of 3 mm has a limiting drawing ratio of 2.4....

Mechanical Engineering
Q

Prepare 5 pages (max. ) brief description about Multiphase flow pumps that work at high gas...

Mechanical Engineering
Q

A consumer group claims that the mean minimum time it takes for a sedan to...

Basic Math
Q

In the sale room at a store, every item is on sale for half the...

Basic Math
Q

1850 If f x x 2 5 and g x f x 2 evaluate g...

Calculus
Q

Question 1. Pittman Company is a small but growing manufacturer of telecommunications equipment....

Accounting
Q

The following information pertains to Pharoah Company. 1....

Accounting
Q

1.4 please help will give like if correct Exercise...

Accounting
Q

Which citation refers to a U.S. Tax Court decision? a. Portland Manufacturing Co. v. Comm.,...

Accounting
Q

Lohn Corporation is expected to pay the following dividends over the next four years: $13,...

Finance