On January 1, 2010, Stanley Corp., a lessor, signed a direct financing lease.Stanley was to receive annual year-end payments of $8, 000 for ten years, after which there was a guaranteed residual value of $6, 000.The implicit interest rate was 8%.Actuarial information for 8%, ten periods follows: $\begin{array}{llr}
\text {Present value of ordinary annuity of $ \$ 1 $ } &6.71008\
\text {Present value of amount of $ \$ 1 $ } &0.46315\
\end{array}$
On January 1, 2010, Stanley should record a debit to Lease Receivable for
A)$53, 680.64
B)$56, 459.78
C)$80, 000.00
D)$86, 000.00

Question

On January 1, 2010, Stanley Corp., a lessor, signed a direct financing lease.Stanley was to receive annual year-end payments of $8, 000 for ten years, after which there was a guaranteed residual value of $6, 000.The implicit interest rate was 8%.Actuarial information for 8%, ten periods follows: $\begin{array}{llr}
  \text {Present value of ordinary annuity of $ \$ 1 $  } &6.71008\
 \text {Present value of amount of $ \$ 1 $  } &0.46315\
\end{array}$
  On January 1, 2010, Stanley should record a debit to Lease Receivable for
A)$53, 680.64
B)$56, 459.78
C)$80, 000.00
D)$86, 000.00

Quizplus · Accepted Answer

The Answer of On January 1, 2010, Stanley Corp., a lessor, signed a direct financing lease.Stanley was to receive annual year-end payments of $8, 000 for ten years, after which there was a guaranteed residual value of $6, 000.The implicit interest rate was 8%.Actuarial information for 8%, ten periods follows: $\begin{array}{llr}
  \text {Present value of ordinary annuity of $ \$ 1 $  } &6.71008\
 \text {Present value of amount of $ \$ 1 $  } &0.46315\
\end{array}$
  On January 1, 2010, Stanley should record a debit to Lease Receivable for
A)$53, 680.64
B)$56, 459.78
C)$80, 000.00
D)$86, 000.00

On January 1, 2010, Stanley Corp On January 1, 2010, Stanley Should Record a Debit to Direct