On January 1, 2020, Lessor Company leased a machinery to another entity with the following...
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Accounting
On January 1, 2020, Lessor Company leased a machinery to another entity with the following details:
Cost of machinery2,902,190
Residual value350,000
Lease term5 years
Useful life of machinery5 years
Implicit interest rate12%
PVF of 12% for 5 years0.5674
PVFOA of 12% for 5 years3.6048
There is neither a transfer of title nor a purchase option.
1. What is the unearned interest income on January 1, 2020?
2. What is the current portion of lease receivable on December 31, 2020?
3. What is the noncurrent portion of lease receivable on December 31, 2021?
4. What is the carrying amount of the lease receivable on December 31, 2023?
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