-
+1 - 312-224-1615
Get in touch with us
-
support@helpwithassignment.com
Send us an e-mail
Solution Library
Calculation of Present Value of Operating Lease Payments and Lease Liability of Business
Question
1. Kling Technology disclosed the following minimum rental commitments under non-cancelable operating leases in its 2012 annual report:
|
Minimum operating lease payments |
Amount (in millions) |
|
2013 |
$ 86 |
|
2014 |
56 |
|
2015 |
44 |
|
2016 |
36 |
|
2017 |
32 |
|
2018 |
30 |
|
Total |
$284 |
What is the present value of these operating lease payments, assuming a 6% discount rate?
2. Taylor’s Corp. disclosed the following lease information in its 2011 annual report (in millions). What lease liability does Taylor’s report on its balance sheet?
|
|
Capital Leases |
Operating Leases |
|
2012 |
$1,000 |
$10,746 |
|
2013 |
1,000 |
11,022 |
|
2014 |
1,000 |
9,473 |
|
2015 |
1,000 |
8,841 |
|
2016 |
1,000 |
8,579 |
|
Thereafter |
19,500 |
121,524 |
|
Total |
24,500 |
$170,185 |
|
Amount representing interest |
(11,578) |
|
|
Net present value of leases |
$ 12,922 |
|
Summary
These short answer questions belong to Finance. The 1st question is about calculating the present value of operating lease payments at 6% discount rate and the 2nd question is about calculating the lease liability of a business.
Total Word Count NA
WHAT OUR STUDENTS SAY
Had a great help with dynamic SQL programming in Oracle database from HwA and the experts are very helpful. I kept constant touch with HwA during my entire Oracle course and as a professional now, I must admit that I owe a lot to HwA for my success.
Stuart Williamson Student
Earlier I used to find excuses for not doing my location strategy homework, when Veronica, my friend told me about HwA and then everything fell into place. Starting from the strategic location assignments to the critical path measure problem solutions, their location strategy strategic location experts helped me get a straight A in all the homework.
Suzanna Fletcher Student
Marketing was always my area of preference. So I was confident when I got through the MBA program at Duke. But writing all the assignments over the existing work load was proving to be too much for me. The online marketing assignment expert at TheReliableTutor saved my time and effort by conducting all the research and guiding me through the material.
Shane Duncan Student
I had missed the classes on Isometrics because I had to miss school for some family emergencies. With the existing course load I had not got time to catch up with the topic and so when time came to write the assignment on Isometrics I was absolutely clueless. Thanks to the basic mathematics assignment experts at HwA I was able to not only understand the assignment but also submit the essay on time. The quality of work provided is also very high and I have been noticing an upturn in my overall grades.
Jamal Akhtar Student
I had difficulty in understanding the quantitative chemistry assignment. The assignment expert at HwA helped me understand the topic in a lucid manner and also guided me to write the quantitative chemistry assignment in a way that fetched me an A!
Paul Scholes Student
Comments
this is a very good website
I have 50 questions for the same test your page is showing only 28
hi can you please help or guide me to answer my assignments. thanks
hi can anyone help or guide me to my assignments. thanks
This solution is perfect ...thanks
Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes
Perfect bank of solution.
great !
thanks for the quick response. the solution looks good. :)
thnx for the answer. it was perfect. just the way i wanted it.
works fine.