Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. reporting finance lease, purchase option--lessee o

Reporting Finance Lease, Purchase Option--Lessee On January 1, 2020, lessor Marcy and lessee Lenox contract...

50.1K

Verified Solution

Question

Accounting

image
Reporting Finance Lease, Purchase Option--Lessee On January 1, 2020, lessor Marcy and lessee Lenox contract for the lease of a machine for five payments of $13,30 each. The 513.300 payments are to be paid at the end of each year. They also agree that at the time of the fifth payment for an added $11.400 purchase option payment, Lenax can buy the property. Lenox reasonably expects to exercise the purchase option as the amount is well under the expected fair value at that time, Lenox's incremental borrowing rates per year and Lenox is unaware of the implicit rate of the lease. The economic life of the asset is sex years. Howwalang day the Computea value of the seats Amortization Schedule Journal Entries c. Prepare an amortization schedule of the lease fiability Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule Note Include any net rounding difference to Lease Liability in the Interest on Libility amount for Dec 31, 2024 Leare Interest Reduction of Date Payment on Lisbiy Lease Liability Lease Liit 1,2020 DE 31.2003 5 De 2001 D 3.2002 D 3.2003 DE 1.2004 Focal

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students