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Purdue Corporation leased equipment from Hillary Leasing on January 1, 2021. Hillary recently purchased the...

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Accounting

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Purdue Corporation leased equipment from Hillary Leasing on January 1, 2021. Hillary recently purchased the equipment at a cost of $222,664. Other information: Lease term Annual payments Life of asset Fair value of asset Implicit interest rate Incremental rate 3 years $80,000 on January 1 each year 3 years $222,664 8% 8% There is no expected residual value. Required: Prepare appropriate journal entries for Purdue Corporation for 2021. Assume straight-line depreciation and a December 31 year-end. Round to the nearest whole dollar

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