Max Jordan Incorporated has $255 780 in total assets, $80 000 in equity and $175 780 in liabilities.The company is considering a lease with $12 242 in annual lease payments for 6 years. The firstlease payment is due upon signing the lease contract. The company's tax rate is 30% and its borrowing rate is 6.5%. The lessor's implied discount rate is 6.85% and the cost of the asset is $98776. Assuming the lease contract is signed, what is the company's total assets on Day 1 of the lease agreement?
A) $315 044
B) $329 232
C) $318 821
D) $321 689

Question

Quizplus · Accepted Answer

The Answer of Max Jordan Incorporated has $255 780 in total assets, $80 000 in equity and $175 780 in liabilities.The company is considering a lease with $12 242 in annual lease payments for 6 years. The firstlease payment is due upon signing the lease contract. The company's tax rate is 30% and its borrowing rate is 6.5%. The lessor's implied discount rate is 6.85% and the cost of the asset is $98776. Assuming the lease contract is signed, what is the company's total assets on Day 1 of the lease agreement?
A) $315 044
B) $329 232
C) $318 821
D) $321 689

Max Jordan Incorporated Has $255 780 in Total Assets, $80