Current Attempt in Progress
On January Sunland Corp. signed a tenyear noncancellable lease for new machinery. The terms of the lease called
for Sunland to make annual payments of $ at the end of each year for ten years, with title to pass to Sunland at the end
of the lease period. Sunland accordingly accounted for this lease transaction as a finance lease. The machinery has an
estimated useful life of years and no residual value. Sunland uses straightline depreciation for all its property, plant and
equipment. The lease payments were determined to have a present value of $ at an effective interest rate of It
was also determined that the fair value of the machinery on January was $ With respect to this lease, for the
year ending December Sunland should report rounded to the nearest dollar
lease expense of $ and depreciation expense of $
interest expense of $ and depreciation expense of $
interest expense of $ and depreciation expense of $
interest expense of $ and depreciation expense of $
