24) On January 2, 2012, Gold Star Leasing Company leases equipment to Brick Co.

Question

24) On January 2, 2012, Gold Star Leasing Company leases equipment to Brick Co. with 5 equal annual payments of $80,000 each, payable beginning December 31, 2012. Brick Co. agrees to guarantee the $50,000 residual value of the asset at the end of the lease term. Brick

$23,000 The following information for Cooper Enterprises is given below: There were no actuarial gains or losses at January 1, 2013. The average remaining service life of employees is 10 years. The amortization of Other Comprehensive Loss for 2014 is: On January 2, 2012, Gold Star Leasing Company leases equipment to Brick Co. with 5 equal annual payments of $80,000 each, payable beginning December 31, 2012. Brick Co. agrees to guarantee the $50,000 residual value of the asset at the end of the lease term. Brick's incremental borrowing rate is 10%, however it knows that Gold Star's implicit interest rate is 8%. What journal entry would Brick Co. make at December 31, 2013 to record the second lease payment? On January 1, 2010, Piper Co., purchased a machine (its only depreciable asset) for $450,000. The machine has a five-year life, and no salvage value. Sum-of-the-years'-digits depreciation has been used for financial statement reporting and the elective straight-line method for income tax reporting. Effective January 1, 2013, for financial statement reporting, Piper decided to change to the straight-line method for depreciation of the machine. Assume that Piper can justify the change. Piper's income before depreciation, before income taxes, and before the cumulative effect of the accounting change (if any), for the year ended December 31, 2013, is $375,000. The income tax rate for 2013, as well as for the years 2010-2012, is 30%. What amount should Piper report as net income for the year ended December 31, 2013? Accrued salaries payable of $51,000 were not recorded at December 31, 2012. Office supplies on hand of $34,000 at December 31, 2013 were erroneously treated as expense instead of supplies inventory. Neither of these errors was discovered nor corrected. The effect of these two errors would cause 2013 net income and December 31, 2013 retained earnings to be understated $34,000 each. 2012 net income to be overstated $17,000 and 2013 net income to be understated $34,000. 2013 net income to be understated $85,000 and December 31, 2013 retained earnings to be understated $34,000. 2012 net income and December 31, 2012 retained earnings to be understated $51,000 each.

Explanation / Answer

The amortization of Other Comprehensive Loss for 2014 is:

$0-----answer -100% sure

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B ($80,000 x 3.99271) + ($50,000 x .68508) = $353,671.

$80,000

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