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1)On January 1, 2008, CPA Corp. entered into a 10-year lease agreement with CMA, Inc. for industrial equipment. Annual lease payments of $10,000 are payable at the end of each year. CPA knows that the lessor expects a 10 percent return on the lease. CPA has a 12 percent incremental borrowing rate. The equipment is expected to have an estimated useful life of 10 years. In addition, a third party has guaranteed to pay CMA a residual value of $5,000 at the end of the lease.The present value of an ordinary annuity of $1 at12% for 10 years is 5.650210% for 10 years is 6.1446The present value of $1 at12% for 10 years is 0.322010% for 10 years is 0.3855On CPA's October 31, 2008, balance sheet, the principal amount of the lease obligation was$63,374$61,446$58,112None of the above2)CPA Company manufactures equipment that it sells or leases. On December 31, 2009 CPA leased equipment to CMA for six years. At the end of the lease, title transfers to CMA. The lease requires equal annual payments of $40,000, with the first payment due December 31, 2009. CMA could have purchased the equipment for $210,000. The equipment cost CPA $166,000 to manufacture. How much income should CPA report for 2009?$30,000$40,000$44,000None of the above3) In determining the amount of the lease payment, the lessor shouldinclude the estimate of residual value if it is guaranteedinclude the estimate of residual value if it is not guaranteedinclude the estimate of residual value whether or not it is guaranteednot include any estimate of residual value4) The information below was taken from the accounting records of CPA Construction Co. before adjusting entries:Sales$400,000Accounts Receivable45,000Allowance for Uncollectible Accounts (credit balance)1,000Assume that CPA Construction uses the percentage-of-receivables method for estimating bad debts and that this year it estimates that 10 percent of accounts receivable could be uncollectible. The year end adjusting entry would include adebit to Allowance for Uncollectible Accounts for $4,500credit to Allowance for Uncollectible Accounts for $3,500credit to Allowance for Uncollectible Accounts for $5,500credit to Allowance for Uncollectible Accounts for $8,0005) A lease requires a payment at the beginning of each year for 12 years. The initial asset value is $80,000 with no residual value at the end of the lease. If the lessor’s implicit interest rate is 10 percent and the lessee’s incremental borrowing rate is 12 percent, the annual lease payment would be$6,666.$10,674$11,531$11,7416) On January 2, 2005, CPA Inc. signed a 10-year noncancelable lease for a heavy-duty drill press. The lease stipulated annual payments of $30,000 starting at the end of the first year, with title passing to CPA at the expiration of the lease. CPA treated this transaction as a capital lease. The drill press has an estimated useful life of 15 years, with no residual value. CPA uses straight-line depreciation for all of its fixed assets. Aggregate lease payments were determined to have a present value of $180,000, based on implicit interest of 10 percent. On its 2005 income statement, what amount of interest expense should CPA report from this lease transaction?$0$12,000$15,000$18,0007) Which of the following self-constructed assets would not qualify for interest capitalization?Building constructed for resaleBuilding constructed for use in operationEquipment constructed for use in operationEquipment constructed on a repetitive basis for resale8) The information below was taken from the accounting records of CPA Construction Co. before adjusting entries:Sales$400,000Accounts Receivable45,000Allowance for Uncollectible Accounts (credit balance)1,000Assume that CPA Construction uses the percentage-of-sales method for estimating bad debtsand that this year it estimates that 2 percent of sales could be uncollectible. The year endadjusting entry would include adebit to Allowance for Uncollectible Accounts for $9,000credit to Allowance for Uncollectible Accounts for $8,000credit to Allowance for Uncollectible Accounts for $9,000credit to Allowance for Uncollectible Accounts for $10,000
Accounting questions!!!!!!! EXPERTS???? 8 questions....See attachement

Accounting questions!!!!!!! EXPERTS???? 8 questions....See attachement

Question # 00082357 Posted By: jsonix Updated on: 07/13/2015 07:04 PM Due on: 07/13/2015
Subject Business Topic General Business Tutorials:
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See attachement (accounting) This are only 8 questions.  Any expert????? ASAP offer until 1030pm tonight...
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  1. neil2103
    Tutorial # 00077035 Posted By: neil2103 Posted on: 07/13/2015 09:03 PM
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