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On January 1,2022 , signed an eight-year lease agreement for equipment. Annual payments of $28,500...

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Accounting

image On January 1,2022 , signed an eight-year lease agreement for equipment. Annual payments of $28,500 are to be made at the beginning of each year. At the end of the lease, the equipment will revert to the lessor. The equipment has a useful life of eight years and has no residual value. At the time of the lease agreement, the equipment has a fair value of $166,000. An interest rate of 10.5% and straight-line depreciation are used. A. Use the abovementioned Information to solve Questions from 1-3. Q1: Identify the type of lease Q2: Lease amortization schedule Q3: Journal entries at: - January 1,2022 - December 31,2022 - January 1,2023 - December 31,2023 B. Highlights the differences in calculation treatment between operating Lease and financial lease and repeat the same accounting treatment (Journal Entry) under operating lease terms. - January 1,2022 - December 31,2022 - January 1,2023 - December 31,2023

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