Commencement date May 1,2025 Annual lease payment due at the beginning of ...

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Accounting

Commencement date
May 1,2025
Annual lease payment due at the beginning of
each year, beginning with May 1,2025
$17,865.02
Bargain purchase option price at end of lease term
$7,000
Lease term
5 years
Economic life of leased equipment
10 years
Lessor's cost
$65,000
Fair value of asset at May 1,2025
$85,000.10
Lessor's implicit rate
6%
Lessee's incremental borrowing rate
6%
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