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Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1,2024. International ...

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Question

Accounting

Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1,2024. International
Machines manufactured the equipment at a cost of $85,000. Manufacturers Southern's fiscal year ends December 31.
Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Related Information:
Lease term 2 years (8 quarterly periods)
Quarterly rental payments $15,000 at the beginning of each period
Economic life of asset
Fair value of asset
2 years
Implicit interest rate
$112,080
years
8%
Required:
Show how International Machines determined the $15,000 quarterly lease payments.
Prepare appropriate entries for International Machines to record the lease at its beginning, January 1,2024, and the
lease payment on April 1,2024.
Complete this question by entering your answers in the tabs below.
Show how International Machines determined the $15,000 quarterly lease payments.
Note: Round your intermediate and final answers to the nearest whole dollar.
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