Recording Operating Lease EntriesLessor On January 1, Lessee Inc. leased equipment at...
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Accounting
Recording Operating Lease EntriesLessor
On January Lessee Inc. leased equipment at an annual payment of $ payable at the beginning of each year for years. The equipment had a fair value of $ a book value of $ and was commonly purchased or leased by customers. The lessor estimates that the equipment has an estimated useful life of years and an estimated residual value of $ not guaranteed by the lessee. Lessors implicit rate is which is unknown to the lessee. The lessees incremental borrowing rate is The lease does not contain a purchase option or a renewal option. The lessee had no other costs associated with this lease.
Required
a Recalculate the lessors lease payment.
Note: Round answer to the nearest dollar.
Note: Do not use a negative sign with your answer.
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