Resolved Question: Please help me with this
Yellow Ltd is a diversified company with nationwide interests in real estate, finance, mining and metal fabrication. The company has offices and locations in major cities throughout Fiji. Corporate headquarters for Yellow Ltd are located in Labasa, and executives connected with various phases of company operations travel extensively. Corporate management is currently evaluating the feasibility of acquiring a business aircraft that can be used by company executives to expedite business travel to areas not adequately served by commercial airlines. Proposals for either leasing or purchasing a suitable aircraft have been analyzed, and the leasing proposal was considered to be more desirable.
The proposed lease agreement involves an aircraft that has a fair value of $1 000 000. This plane would be leased for a period of 10 years starting on 1 July 2010. The lease agreement is cancellable only on accidental destruction of the plane. An annual lease payment of $141 780 is due on 1 July of each year starting on 1 July 2010. Maintenance operations are scheduled by the lessor, and Yellow Ltd will pay for these services. Estimated annual maintenance costs are $6 900. The lessor will pay all insurance premiums and terminal fees, which amount to a combined total of $4 000 annually and are included in the annual lease payment of $141 780.
On expiration of the 10 year lease, Yellow Ltd can purchase the aircraft for $44 440. The estimated useful life of the aircraft is 15 years, and its salvage value in the second hand market is estimated to be $100 000 after 10 years. The salvage value probably will never be less than $75 000 if the engines are overhauled and maintained as prescribed by the manufacturer. If the purchase option is not exercised possession of the plane will revert to the lessor, and there is no provision for renewing the lease agreement beyond its termination date.
Yellow Ltd can borrow $1 000 000 under a 10 year term loan agreement at an annual interest rate of 12%. The implicit interest rate in the lease is 8% based on ten net rental payments of $137780 per year and the initial market value of $1 000 000 for the plane. On 1 July 2010 the present value of all net rental payments and the purchase option of $44 440 is $888 890 using the 12% interest rate. The present value of all net rental payments and the $44 440 purchase option on 1 July 2010 is $1 022 226 using the 8% interest rate implicit in the lease agreement is a finance lease as defined in IAS 17.
a) What is the appropriate amount that Yellow Ltd should recognize for the leased aircraft on its statement of financial position as on 1st July 2010? State the reasons for your conclusion.
b) Assume that the annual lease payment is $141 780 as stated in the question, that the appropriate capitalized amount for the leased aircraft is $1 000 000 on 1 July 2010 and that the implicit interest rate is 9%. Provide all the journal entries (narrations not required) that pertain to the lease for the year running from 1 July 2010 to 30 June 2011 and the journal entry to be made on 1 July 2011.
c) How will the lease be reported in the 30 June 2011 balance sheet and related income statement
Posted on 5 November 2013 | 2:31 pm
Resolved Question: Is there any Psychologist
Is there any Psychologist out there who would be willing to be my virtual mentor?
I need a psychologist or some who has studied Psychology as a major who can be a mentor / advisor / teacher to me. I am very much interested in psychology and have taken up psychology as an elective course in my University [I would have taken it as a major but the University did not have that as an option they only had it as an elective.
I need someone with experience in psychology and knowledge on all aspects of Psychology. [comparative psychology, artificial intelligence, neuropsychology, and cognitive neuroscience, Functionalism, Behaviorism, Gestalt Psychology, Psychodynamic psychology, Social psychology, structuralism and so on]. Someone to answer my questions relating to the above, in terms of education and practical aspects.
If anyone is willing to be my mentor please answer here and email me as well.
This will really help me build my success in my studies as well as clear my path way to a solid career. And also help me understand the psychology of humans.
The reason why I am looking for a virtual mentor is that I am from FIJI Islands and here we don’t have many qualified Psychologists [probably 2 that I know of and 2-3 others who I don’ know]. And finding a mentor in FIJI is like searching for water in a desert.
I can’t pay for you services but anyone willing to help me please do contact me.
Thank you, in advance. See I am an online student so I do not attend a physical/traditional university. We do not have normal lecture and all that. We are just given notes and reading material and self quizzes and a final exam. So basically I already do online research and text book study but I would like to have some who I can turn to for guidance and all that I have already mentioned. It will be very helpful.
Our instructors are there as support only we can’t have a interactive dialogue with them I need someone as a mentor who I can interact with and share my knowledge and gain more other then what we are already being taught. You can have more then 2 mentors’ you know! There is no limit to that. And a second opinion is always good. Having 3 ideas for one topic is better then just 1 idea, isn’t it? Hence why I posted my initial question.
Posted on 13 April 2011 | 11:10 am
Resolved Question: Do you know anything
can you describe Fiji's goverment system??!!
Posted on 5 December 2010 | 7:40 am
Resolved Question: How would you discribe
Posted on 5 December 2010 | 5:56 am
Resolved Question: Is she the one that i am
I am currently dating this girl for about a couple of weeks.I am just wondering if anyone can predict if she is the one i am going to get married?
More info about me:
DOB - 28 aug 1978
PLACE - Labasa, Fiji.
Posted on 3 August 2010 | 5:24 pm