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(Solved): Please solve this with details Datamax Computer Corporation leases and services computer systems. ...



Please solve this with details Datamax Computer Corporation leases and services computer systems. Datamax acquires each computer system at a cost of $40,000. Systems are then leased on either a short- or long-term basis to customers who use them for personal household management purposes. Systems must be bolted to the floor to prevent movement and excess vibration. This same computer system is marketed by independent retailers with a selling price of $60,000, including sales tax and delivery charges. On the lien date Datamax has: Ten computer systems that are available for lease. Ten computer systems that are on lease, as follows: Five leases have five-month terms and the monthly payments reflect economic rent only – no lessee equity buildup. Five leases have 60-month terms and monthly payments include equity buildup – the lessee has the option to buy the computer system at the end of the lease for one dollar. One computer system is used by the company for accounting purposes. 50 computer systems are owned by customers and serviced by Datamax. QUESTIONS: Note - All questions pertain to Datamax as the Assessee. You must show your work/calculations in order to receive grade points for your answers. 1. What is the reportable acquisition cost of the property described in (a) above? 2. What is the reportable acquisition cost of the property described in (b) above? 3. What is the reportable acquisition cost of the property described in (c) above? 4. What is the reportable acquisition cost of the property described in (d) above?



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