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Ivanhoe Co. as lessee records a finance lease of machinery on January 1, 2021. The...

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Accounting

Ivanhoe Co. as lessee records a finance lease of machinery on January 1, 2021. The seven annual lease payments of $822,000 are made at the end of each year. The present value of the lease payments at 10% is $4,002,000. Ivanhoe uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value).

(a)

Prepare an amortization table for 20121 and 2022.

Ivanhoe Co. Lease Amortization Schedule

Date

Annual Lease Receipt/Payment

Interest on Receivable/Liability

Reduction in Receivable/Liability

Lease Receivable/Liability
1/1/21 $
12/31/21 $ $ $
12/31/22

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