Chapter 13 - direct financing lease- lessor - Studocu

The equipment shall revert to Iceberg Company at the end of the lease. Cost of Equipment …

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CHAPTER 13 BANKRUPTCY FAQS NJ | LOFARO & REISER

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The Bankruptcy Court charges a $289 filing fee to file a Chapter 13 case. The standard …

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FAQs about Chapter 13 - direct financing lease- lessor - Studocu Coupon?

What are the provisions of a direct financing lease?

At the beginning of current year, the an equipment was delivered to a lease under a direct financing lease with the following provisions: Cost of equipment 3,390,000 Annual rental payable at the end of year 600,000 Useful life and lease term 10 years Implicit interest rate 12% ...

How would the initial direct cost affect a lease?

The initial direct cost would effectively spread the initial direct cost over the lease term and reduce the amount of interest income. Implicit interest rate 12% Present value of annuity of 1 for 4 years a 12% 3. ...

What are the terms of a lease?

Terms of the lease specify four-year life for the lease, an annual interest rate of 15% and four year-end rental payments. The lease qualified as a direct financing lease. The lease provided for a transfer of title to the lessee at the end of the lease term. ...

What are the accounting considerations in a lease agreement?

The income of the lessor is only in the form of interest income. No dealer profit is recognized because the fair value and the cost of the asset are equal. Accounting considerations a. Gross investment - This is equal to the gross rentals for the entire lease term plus the absolute amount of the residual value, whether guaranteed or unguaranteed. ...

How does a chapter 13 plan work?

By filing a Chapter 13 Plan, you arrange for the repayment of your debts and for the repayment of liens on your property. In Chapter 13 cases the debtor must pay creditors at least what creditors would receive if the debtor sold or “liquidated” his/her property. ...

When should a chapter 13 payment be made?

A first payment must be made to the Chapter 13 trustee within thirty (30) days of the filing date of your bankruptcy plan. This payment should be delivered to the trustee in advance of the First Meeting of Creditors. ...