The following facts pertain to a noncancelable lease agreement between Oriole Leasing Company and Sage Hill Company, a lessee.
Commencement date
May
Annual lease payment due at the beginning of
each year, beginning with May
$
Bargain purchase option price at end of lease term
$
Lease term
years
Economic life of leased equipment
years
Lessor's cost
$
Fair value of asset at May
$
Lessor's implicit rate
Lessee's incremental borrowing rate
The collectibility of the lease payments by Oriole is probable.
Click here to view factor tables.
For calculation purposes, use decimal places as displayed in the
Prepare a lease amortization schedule for Sage Hill for the year lease term. Round answers to decimal places, e efactor table provided.
