Technoid inc sells compoter systems. Technoid leases computers to Lone Star Company on January 1,2021...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Technoid inc sells compoter systems. Technoid leases computers to Lone Star Company on January 1,2021 . The manufacturing cost of the computers was $17 million. This noncancelable lease had the following termis: - Lease payments: \$2,691,724 semiannually, first payment at January 1, 2021, remaining payments at June 30 and December 31 each year through June 30,2025 . - Lease term: 5 years (10 semiannual payments) - No residual value; no purchase option - Economic life of equipment: 5 years. - Implicit interest rate and lessee's incremental borrowing rate: 6.5 semiannually. - Fair value of the computers at January 1, 202t: 521 million. What is the outstanding bolance of the lease liability in Lone Star's June 30,2021 , balance sheet? (Round your answer to the nearest whole dollar.) Mutiple Crioice 5.715.049. $15,715.058
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: Zin AI - Your personal assistant for all your inquiries!
