Financial Accounting Assignment
foxbro
aigrette.docxIn this assignment, you need to review and provide answers to the questions related to Aigrette’s financial statements.
|
|
Assembly Equipment |
Welding Equipment |
|
Yearly rental (paid at beginning of year) |
$10,500 |
$11,000 |
|
Lease term |
12 years |
10 years |
|
Estimated economic life |
20 years |
10 years |
|
Purchase option |
No |
$5,000 at end of lease |
|
Renewal option |
No |
No |
|
Fair market value at beginning of lease |
$100,000 |
$75,000 |
|
Cost of asset to lessor |
$100,000 |
|
|
Guaranteed residual value |
None |
$5,000 |
|
Unguaranteed residual value |
None |
None |
|
Executory costs |
None |
None |
|
Paid by Panache |
$1,000 per year |
None |
|
Paid by lessor (maintenance) |
None |
$1,000 per year (est.) |
|
Implicit rate of lessor |
Not known |
8% |
|
Estimated fair market value at end of lease |
$10,000 |
$5,000 |
|
Date lease was entered into |
January 1, 2010 |
January 1, 2011 |
