on january 1, ramirez supply leased a car for a four-year period, at which time possession of the car will revert back to the lessor. annual lease payments are $18,100 due on december 31 of each year, calculated by the lessor using a 4% discount rate. negotiations led to ramirez guaranteeing the lessor a $54,300 residual value at the end of the lease term although ramirez estimates that the residual value after four years will be $51,200. what is the amount to be added to the right-of-use asset and lease payable under the residual value guarantee? (round your answer to the nearest whole dollar.) the present value of $1: n

Answers

Answer 1

In this given case, the amount to be added to the right-of-use asset and lease payable under the residual value guarantee would be zero.

To calculate the amount to be added to the right-of-use asset and lease payable under the residual value guarantee, we need to compare the present value of the residual value guarantee with the estimated residual value.

The annual lease payment is $18,100, due on December 31 of each year, and the lease term is four years. The discount rate used by the lessor is 4%.

We can calculate the present value of the $54,300 residual value guarantee using the discount rate of 4% and the lease term of four years:

Present Value of $54,300 = $54,300 / (1 + 0.04)^4

Present Value of $54,300 = $54,300 / 1.16985856

Present Value of $54,300 = $46,429.83 (rounded to the nearest whole dollar)

Ramirez estimates the residual value after four years to be $51,200.

To calculate the difference, we subtract the estimated residual value from the present value of the residual value guarantee:

Difference = Present Value of $54,300 - Estimated Residual Value

Difference = $46,429.83 - $51,200

Difference = -$4,770.17 (negative value indicates an overestimate)

Since the difference is negative, it means that Ramirez overestimated the residual value. In this case, the amount to be added to the right-of-use asset and lease payable under the residual value guarantee would be zero. Ramirez does not need to increase the right-of-use asset or lease payable because the estimated residual value is higher than the present value of the residual value guarantee.

Learn more about Right-of-use asset from the link given below.

https://brainly.com/question/30899823

#SPJ4


Related Questions

marigold company acquires delivery truck at a cost of 50000 on january 1 2022 the truck is expected to have a salage value of

Answers

The annual depreciation expense for the first and second years of Marigold Company's delivery truck, using the straight-line method, is $5,750 for each year.

To calculate the annual depreciation expense using the straight-line method, we need to determine the depreciable base and divide it by the useful life.

Depreciable base = Cost of the truck - Salvage value

Depreciable base = $50,000 - $4,000 = $46,000

Annual depreciation expense = Depreciable base / Useful life

Annual depreciation expense = $46,000 / 8 years

1st-year depreciation expense = $46,000 / 8 = $5,750

2nd-year depreciation expense = $46,000 / 8 = $5,750

Therefore, the annual depreciation expense for the first and second years using the straight-line method is $5,750 each.

To know more about  straight-line method:

https://brainly.com/question/30243743

#SPJ4

--The given question is incomplete, the complete question is given below " Marigold Company acquires a delivery truck at a cost of $50.000 on January 1,2022 . The truck is expected to hive a salvage value of $4,000 at the end of its 8 -year useful life. Compute annual depreciation expense for the first and second years using the straight-line method"--

what does the subject of eschatology have to say to us today as we live our daily lives

Answers

Eschatology, the study of the end times or the final destiny of humanity, has several insights that can be relevant to our daily lives.

Firstly, eschatology reminds us of the temporary nature of our existence and the importance of living with a sense of purpose and meaning. Recognizing that life is finite can encourage us to prioritize what truly matters, such as our relationships, personal growth, and contributions to society. It reminds us to make the most of each day and not take our time for granted. Secondly, eschatology offers hope and comfort in challenging times. It highlights the belief in a future restoration or fulfilment of justice, peace, and harmony. This can provide solace when we face difficulties, injustice, or loss. Eschatological beliefs can inspire resilience, perseverance, and a commitment to working towards a better future, both individually and collectively. Additionally, eschatology can foster a sense of responsibility and stewardship towards the world and future generations. It emphasizes the interconnectedness of all beings and the importance of preserving and caring for the Earth. This can prompt us to adopt sustainable practices, advocate for environmental protection, and engage in social justice efforts that contribute to the well-being of current and future generations.

While eschatology may hold different interpretations and beliefs across religious and philosophical traditions, its overarching message encourages us to live with intention, seek meaning beyond material pursuits, find hope in challenging times, and embrace our responsibility towards the world and future generations. It offers insights that can guide our daily choices and actions, promoting a more mindful and purposeful way of life.

Learn more about Eschatology here:

https://brainly.com/question/14620184

#SPJ11

All else equal, as the price of a product falls, the quantity supplied increases. T/F

Answers

All else equal, as the price of a product falls, the quantity supplied increases - True.

All else equal, as the price of a product falls, the quantity supplied increases. This statement reflects the basic principle of supply in economics known as the law of supply. According to this law, there is a positive relationship between the price of a product and the quantity supplied by producers.

When the price of a product decreases, producers are typically willing to supply a smaller quantity due to reduced profitability. Conversely, when the price of a product increases, producers are motivated to supply a larger quantity in order to maximize their profits.

To know more about law of supply, click here:

https://brainly.com/question/30161327

#SPJ11

The state has attempted to streamline bureaucracy by implementing privatization which is the:______.

Answers

The state has attempted to streamline bureaucracy by implementing privatization, which is the transfer of government-owned assets or services to the private sector.

Privatization involves shifting the ownership, control, and management of public assets, enterprises, or services from the government to private entities. This can include various sectors such as transportation, utilities, healthcare, education, and more. The objective of privatization is to enhance efficiency, reduce bureaucratic inefficiencies, encourage competition, and improve service quality by introducing private sector expertise, innovation, and market-oriented practices.

By transferring responsibilities to the private sector, governments aim to streamline bureaucracy, reduce administrative burdens, and create a more agile and responsive system. Privatization can lead to improved service delivery, cost savings, and a more efficient allocation of resources. However, it can also raise concerns related to potential monopolies, reduced accessibility for marginalized communities, and the need for effective regulation to safeguard public interests.

Overall, privatization is a strategy employed by the state to streamline bureaucracy and leverage the capabilities of the private sector to deliver public services and manage assets more effectively and efficiently.

To learn more about bureaucracy

https://brainly.com/question/30505419

#SPJ11

Marketing communication strategy can be decided by conducting an image analysis by profiling the target audience in terms of ________.
A) brand knowledge
B) purchase patterns
C) demographic characteristics
D) income levels
E) psychographic characteristics

Answers

Correct option is E. psychographic characteristics. Based on psychographic characteristics, marketers can gain a deeper understanding of their customers' needs, desires, and aspirations.

Psychographic characteristics refer to the psychological and behavioral attributes of individuals, including their values, interests, attitudes, and lifestyles. Profiling the target audience in terms of psychographic characteristics can provide valuable insights into their motivations, preferences, and decision-making processes. This information helps in developing a marketing communication strategy that effectively appeals to the target audience and influences their behavior.

There is no specific calculation involved in profiling the target audience based on psychographic characteristics. Instead, it requires gathering qualitative data through surveys, interviews, focus groups, or market research studies to understand the target audience's psychographic traits.

By conducting an image analysis and profiling the target audience based on psychographic characteristics, marketers can gain a deeper understanding of their customers' needs, desires, and aspirations. This knowledge allows them to create tailored marketing messages, select appropriate communication channels, and develop strategies that resonate with the target audience, leading to more effective and targeted marketing communication efforts.

 

To know more about target audience, visit;

https://brainly.com/question/31192753

#SPJ11

As the team leader, Lori has responsibility to give verbal praise or even spot bonuses when team members exhibit exceptional performance. Lori has been given ____ power

Answers

Lori has been given reward power as a team leader, which allows her to offer positive reinforcement and incentives to her team members for their exceptional performance.

To know more about Lori has been given reward power as a team leader

please click:-

brainly.com/question/4716355

#SPJ11

Other Questions
Marketing communication strategy can be decided by conducting an image analysis by profiling the target audience in terms of ________.A) brand knowledgeB) purchase patternsC) demographic characteristicsD) income levelsE) psychographic characteristics dizziness brought on by standing too long in the heat of suddenly stopping exercise is referred to as heat? Antidiuretic hormone prevents excessive water loss by promoting water reabsorption in the:a) glomerulusb) proximal convoluted tubulec) distal convoluted tubuled) collecting ducte) bladder Which method is the best way to communicate about difficult issues?by letterover e-mailin personon the phone two powerful voices that emerged on the hard bop scene that benefited with successful careers and widespread popularity following their affiliation with art blakey were identify the literary form suggested by the centers around a character trying to solve a problem; easy to read in one day Diabetes insipidus results when there is not enough insulin secreted to control blood sugar levels. T/F you are classically conditioning your turtle zigi to blink when seeing a photo of lady gaga. what is the unconditioned stimulus? As the team leader, Lori has responsibility to give verbal praise or even spot bonuses when team members exhibit exceptional performance. Lori has been given ____ power Which global supply chain characteristic moves beyond visible material flows to invisible dimensions such as brands, services, technological collaboration, and financing?BorderlessDeregulatedCyber-connectedEnvironmental ConsciousnessSocial Responsibility researchers prefer using the _____________ death rate because it helps them understand differences in the health of populations, controlling for the numbers of people who die at different ages. Please help me I only have 3 days to get it done and if I dont I wont pass PLS HELP WILL MARK BRAINLIESTin the book "the giver" is the world they are living in a utopia or dystopia? use 2 examples from the book.can it be maybe 1 or 2 short paragraphs thank you marigold company acquires delivery truck at a cost of 50000 on january 1 2022 the truck is expected to have a salage value of what is the compositional range of the lavas erupted in association with continental hotspots and rifting? what are the sources of the lavas? Write the expression in terms of sine only. 3 sin x + cos x behavior therapy for obsessive-compulsive disorder usually involves a combination of exposure with ______. light with a wavelength of 694 nmnm passes through a slit 7.90 mm wide and falls on a screen 1.95 mm away. help i cant solve this scientists generally believe that the original source of comets is: -the sun itself -the inner planets - the outer planets -The moons of the planetsA scientist is using a telescope and sees a comet that has a tail. What can the surmise about the comet? -it came from the oort cloud -it came from the kuiper belt -it has a retrograde orbit -it is close and approaching the sunwhat is the nucleus of a comet made of? -dark ice -bright metal -Black dust -lightlight gassesif a comet were so large that its mass generated more gravity, then what would happen? -it wouldn't orbit the sun -it would've become an asteroid -it wouldn't have a tail -it would have become a meteorthe tails of the comets are formed as____ escape from the _____.- gas and dust; coma -ice and gas; surface -ice and dust; nucleus -dust and ice; comamost asteroids orbit the sun between : -mercury and venus - mars and iupiter -neptune and pluto -saturn and uranuswhich planets formation was most responsible for the creation of asteroids in our solar system ? -Jupiter - Saturn -mars -Uranuswhat is the best description of an asteroid? -they are remains of icy planetoids -they are remains of planetary collisions -they are protoplanets with too little mass -they are Debris from the outer planets