Leewin Brokerage enters into a lease agreement with Bumble Motors to lease an automobile with...
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Leewin Brokerage enters into a lease agreement with Bumble Motors to lease an automobile with a fair value of 574 000 under a 5-year base on December 20, 2018 The lease commences on January 1, 2019, and Lewih will return the automobile to Bumble on December 31, 2023. The automobile has an estimated useful of 7 years to win made a lease payment of $10 200 on December 20, 2018 In addition the lease agreement plates annual payments of $10 200. due on January 1 of 2019 2020 2021 2022 and 2023 The implicirate of the leases and is known by Lewin There is no purchase option, nolase Incentives no residual value guarantees, and no transfer of ownership Lewin incurs initial direct costs of $1200 Assuming that this is classified as operating lease how much amortization is recorded on the right-of-use sain 20197 O A $12.400 OB. 510 672 OC. 50 OD. $1800
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