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Concord Incorporated leases a piece of equipment to Skysong Corporation on January 1, 2017. The lease agreement called for annual rental payments of $5,443 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $27,600, a book value of $22,600, and both parties expect a residual value of $8,250 at the end of the lease term, though this amount is not guaranteed. Concord set the lease payments with the intent of earning a 4% return, and Skysong is aware of this rate. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Correct answer. Your answer is correct. Determine the nature of the lease to both Concord and Skysong. The lease is a/an Entry field with correct answer lease to Concord. The lease is a/an Entry field with correct answer lease to Skysong. SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Partially correct answer. Your answer is partially correct. Try again. Prepare the lease amortization schedule(s) for Skysong for all 4 years of the lease. (Round answers to 0 decimal places, e.g. 5,175.) SKYSONG CORPORATION Lease Amortization Schedule Annuity-Due Basis Date Annual Payment Interest on Liability Reduction of Lease Liability Lease Liability 1/1/17 $Entry field with correct answer 0 $Entry field with correct answer 0 $Entry field with correct answer 0 $Entry field with incorrect answer 19758 1/1/17 Entry field with correct answer 5443 Entry field with correct answer 0 Entry field with incorrect answer Entry field with incorrect answer 1/1/18 Entry field with correct answer 5443 Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer 1/1/19 Entry field with correct answer 5443 Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer 1/1/20 Entry field with correct answer 5443 Entry field with incorrect answer Entry field with incorrect answer Entry field with correct answer Lease Expense Schedule Date Lease Expense (Straight-Line) Interest on Lease Liability Amortization of ROU Asset Carrying Value of ROU Asset 1/1/17 $Entry field with correct answer $Entry field with correct answer $Entry field with correct answer $Entry field with incorrect answer 12/31/17 Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer 12/31/18 Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer 12/31/19 Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer now contains modified data 12/31/20 Entry field with incorrect answer Entry field with correct answer Entry field with incorrect answer Entry field with correct answer

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