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Lessor Company has equipment that cost $40.000 and has a fair value of $50,000. There...

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Accounting

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Lessor Company has equipment that cost $40.000 and has a fair value of $50,000. There is an unguaranteed residual value of $3000. The lease term is 6 years. Compute the periodic lease payments due at the beginning of each year for this sales-type lease and prepare the jounnal entries for lessor for tha first year. The implicit rate for the lease is 7%. Lessee Company leases a truak for 3 years. The economic life of the truck is 6 years. Paynents of $6000 are due at the beginning of each year. The incromental borrowing rate is 79. Prepare the journal entries for this operating lease for the first year

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