Capitalized leased asset on May 1, 2022 (400,000 x 5.95) 2,380,000
MC 31 – D
Depreciation is based on the economic life of the asset (2,400,000 – 200,000) / 8 years 275,000
MC 32 – D
Present value of annual rentals (1,742,174 x 3.48685) 6,074,699
Present value of guaranteed residual value (1.2M x 0.68301) 819,612 Capitalized cost of the machine 6,894,311
MC 33 – C
Depreciation is based on the lease term (6,894,311 – 1,200,000) / 4 1,423,578
MC 34 – A
Present value of annual rentals (1,742,174 x 3.48685) 6,074,699
MC 35 – D
Depreciation is based on the lease term 6,074,699 / 4 1,518,675
MC 36 – D
Cost of leased asset 6,245,450
Accumulated depreciation (6,245,250 – 80,000) / 6 = 1,027,575; 1,027,575 x 4 years (4,110,300) Carrying value, end of lease term 2,135,150 Bargain option price (250,000) Loss from failure to exercise the purchase option 1,885,150
List of Key Financial Ratios: Formulas and Calculation Examples Defined for Different Types of Profitability Ratios and the Other Most Important Financial Ratios