Allied Industries manufactures high-performance conveyers that often are leased to industrial customers. On December 31, 2011, Allied leased a conveyer to Poole Carrier Corporation for a three-year period ending December 31, 2014, at which time possession of the leased asset will revert back to Allied. Equal payments under the lease are $199,998 and are due on December 31 of each year. The first payment was made on December 31, 2011. Collectibility of the remaining lease payments is reasonably assured, and Allied has no material cost uncertainties. The conveyer cost $450,000 to manufacture and has an expected useful life of six years. Its normal sales price is $659,799. The expected residual value of $150,000 at December 31, 2014, is guaranteed by United Assurance Group. Poole Carrier?s incremental borrowing rate and the interest rate implicit in the lease payments are 10%. (Use Table 2 and Table 6),this attachment didn't have answer, could you send it one more time.
Paper#9476 | Written in 18-Jul-2015Price : $25