ACC 305 (ACC 305)

Alt Corporation enters into an agreement with Yates Rentals Co. on January 1, 2015 for the purpose of leasing a machine to be used in its manufacturing operations. The following data pertain to the agreement: Multiple Choice Question 71 Pisa, Inc. leased equipment from Tower Company under a four-year lease requiring equal annual payments of $172,076, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a...

Quigley Co. bought a machine on January 1, 2013 for $1,399,500. It had a $119,500 estimated residual value and a 8-year life. An expense account was debited on the purchase date. Quigley uses straight-line depreciation. This was discovered in 2015. Question 2 The condensed financial statements of Marks Company for the years 2014-2015 are presented below: Question 3 Hughey Co. as lessee records a capital lease of machinery on January 1, 2014. The seven annual lease payments of $700,300 are m...