标题: Lessor/Capital Lease problem from Mock [打印本页] 作者: whew1110 时间: 2011-7-11 19:42 标题: Lessor/Capital Lease problem from Mock
On 1 January 2008 a company enters into a lease agreement to lease a piece of
machinery as the lessor with the following terms:
Annual lease payment due 31 December $75,000
Lease term 6 years
Estimated useful life of the machine 7 years
Estimated salvage value of the machine $0
Carrying value (cost) of leased asset $300,000
Implied interest rate on lease 7%
The firm is reasonably assured of the collection of the lease payments.
The total affect on 2008 pre-tax income for the lessor from this lease is closest to:
A. $32,143.
B. $75,000.
C. $82,519.
I understand the following components of the income statement.
1) Int expense=.07*357K (pv of lease incomes)=25K
2) Profit booked based on the book value = 57K
But what about the Depr expense component? 51K (357K/7) How do you reconcile for that?
Am I missing something major? pls help!作者: JGovender 时间: 2011-7-11 19:42
Do you still need to depreciate it if the asset ain't your's anymore? I'm not sure you need to. So (1) + (2) is all you need, imho.作者: shootingstar 时间: 2011-7-11 19:42
