Q4.On January 1, 20X2 Big Boom Inc, A firearms Ammunition reloading business ,

Q4.On January 1, 20X2 Big Boom Inc, A firearms Ammunition reloading business , entered into an eight year non cancellable lease with Shrapnel Inc for equipment having an estimated useful life of 12 years and fair value that you need to calculate because the shrapnel accountant confided to you that he doesn’t know how to calculate because he really doesn’t have a CPA , but his employer thinks he does. ( take a shot at your ethical responsibilities as a CPA in this situation , if any , and if you get it right, there is a 1 mark bonus) The lease rate is 8%. Big boom will use straight line method to depreciate the asset. Both companies use IFRS 16. The lease contains the following provisions: 1. Annual lease payments of $838,000( including a $380,000 payment for insurance – you can debit insurance expense) , Payable on January 1 each year . First payment is Jan 1, 20X2. 2. A bargain purchase option that will be exercised by big boom. At the end of the lease Big Boom will pay $300,000 for the equipment. a. Calculate the present value of the minimum lease payments rounded to the nearest dollar. show calculations for possible -part marks. b. Prepare a lease amortization schedule through January 1, 20X4 and round values to the nearest dollar

How to Get Help with your Assignment in 3 mins

  1. Place Your Assignment Request in under 3 mins

    To access our online order form, click the "Order Now" button below.
  2. Complete the Payment

    Click on checkout link at the bottom of the order page to pay.
  3. Download Your Assignment

    Once we receive payment, one of our highly qualified essay writing experts will work on your assignment and complete it within your selected deadline.

What does the completed assignment have?

  • Thorough Research and High-Quality Essay Writing
  • Native UK, US, Canadian, Australian Writers
  • Up-to-date Sources Only (Less than 5 years)
  • 24/7 Online Support
  • Essay in 1,3, 6, 8, 12, 16, 20 hours +...!
  • 100% Plagiarism Free
  • 100% Privacy Guarantee
  • Times New Roman, 12pt
  • Any Referencing Styles (APA, MLA, Harvard, Chicago, Turabian...)
  • 275+ Words per page
  • Single/Double Spaced Papers
  • Plagiarism Report on Request

Why do college students choose our assignment help service?

  • list icon instant gradesExcellent Grades Guaranteed! (A+ or B Minimum)
  • list icon instant grades Privacy Guarantee - No one will ever know!
  • list icon instant gradesAlways delivered on time
  • list icon instant grades High-Quality Essays
  • list icon instant grades24/7 Instant Online Support
  • list icon instant gradesTitle Page --- FREE!
  • list icon instant gradesTable of Contents --- FREE!
  • list icon instant gradesReferences List ---FREE!
  • list icon instant gradesRevisions---FREE!
  • list icon instant gradesPlagiarism Report ---FREE!
  • list icon instant gradesEditing before submitting it to you ---FREE!