Solved: The legal life is five years but can be renewed at 5000 for, Accounting Basics

+44 141 628 6080
[email protected]

The legal life is five years but can be renewed at 5000 for

Problem

Archive bhd acquired a franchise on finance lease. it is required to pay 200000 per annum in advance for five years. the implicit interest rate is 10%. the franchise could be bought for 800000. The legal life is five years but can be renewed at 5000 for another five years. Discuss the accounting treatment for the franchise.

Solution Preview :

Prepared by a verified Expert

Accounting Basics: The legal life is five years but can be renewed at 5000 for

Reference No:- TGS02615884

Now Priced at $15 (50% Discount)

Recommended (92%)

Rated (4.4/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Accounting Basics

Q : Preparing a statement of retained earnings susan may bakery

question preparing a statement of retained earnings susan may bakery inc reported a prior-period adjustment in 2016 an

Q : Xenon corporation has 112000 of regular taxable income

question - xenon corporation has 112000 of regular taxable income 68000 of preference items 98000 of positive

Q : What are molly and dollys realized and recognized gains and

question - molly and dolly form md corporation molly transfers a building with a fair market value of 800000 and a

Q : How could the findings and recommendations of each study

to preparereview the articles presented in this weeks learning resources and analyze each studys use of nonparametric

Q : The legal life is five years but can be renewed at 5000 for

problemarchive bhd acquired a franchise on finance lease it is required to pay 200000 per annum in advance for five

Q : Suppose that fuel efficiency for a particular model car

suppose that fuel efficiency for a particular model car under specified conditions is normally distributed with a mean

Q : How does the direct method differ from the indirect method

question 1 what is free cash flow and how is it calculated2 how does the direct method differ from the indirect method

Q : Record the increase in the present value of the receivable

question - on january 1 2012 a foundation made a pledge to pay 30000 per year at the end of each of the next five years

Q : A pizza company advertises that it puts 05 pounds of real

a pizza company advertises that it puts 05 pounds of real mozzarella cheese on its medium pizzas suppose that the

1932568

Questions
Asked

3,689

Active Tutors

1450345

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Factors driving the growth of the facial aesthetics market

Psychology of Facial Aesthetics 1. Analyse the key factors driving the growth of the facial aesthetics market, including cultural and social influences

Discuss the role of assistive technologies

Discuss the role of assistive technologies in supporting a client's life activities to maintain their independence and promote their inclusion

Male with major depressive disorder is started on bupropion

Scenario: A 45-year-old male with major depressive disorder is started on bupropion. He reports dry mouth.

Female with major depressive disorder consider pregnancy

A 33-year-old female with major depressive disorder is considering pregnancy. She is currently on paroxetine.

Discuss about male with recurrent mdd is in remission

A 60-year-old male with recurrent MDD is in remission. According to APA guidelines, how long should maintenance treatment continue

Patient on an antidepressant reports sexual dysfunction

Scenario: A patient on an antidepressant reports sexual dysfunction.

What medication names requires correction

Question: Which statement about medication names requires correction?