Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. pharoah company, a machinery dealer, leased a mach

Pharoah Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020....

80.2K

Verified Solution

Question

Accounting

Pharoah Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $29,625 at the beginning of each year. The first payment is received on January 1, 2020. Pharoah had purchased the machine during 2016 for $128,000. Collectibility of lease payments by Pharoah is probable. Pharoah set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Pharoah at the termination of the lease.

Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places e.g. 5,275.)

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

Allergies are an overreaction of the immune system towards non-pathogen allergens. Describe the antibodies, cell types, and...

Medical Sciences
Q

Rewrite the following vectors in terms of their magnitude and angle (counterclockwise from the +x direction). (a)...

Physics
Q

The study of rates of chemical reactions.regulationkineticsequilibriumMichaelis-Mentencatalysis

Biology
Q

The melanocyte stimulating hormone receptor gene MC1R codes for one of the key proteins involved...

Biology
Q

1. When the prevailing interest rate in the market is 8% and the stated interest...

Accounting
Q

The Balance Sheet of the equal Henry Partnership on August 31, 2023 is as follows:...

Accounting
Q

Problem #1: Cost flows through a manufacturing organization ...

Accounting
Q

help Find the monthly payments on a 2-year lease for...

Accounting
Q

Juan Real Estate Company (organized as a corporation on April 1, 2013) has completed the...

Accounting
Q

Overhead Budget Johnston Company cleans and applies powder coat paint to metal items on a...

Accounting
Q

Consider the following end of period cash flows for Project X: Period Cash flow Today...

Finance
Q

A project is expected to create operating cash flows of $36,000 a year for four...

Finance