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  3. the following facts pertain to a non-cancelable le

The following facts pertain to a non-cancelable lease agreement between Oriole Leasing Company and Sage...

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Accounting

The following facts pertain to a non-cancelable lease agreement between Oriole Leasing Company and Sage Hill Company, a lessee.
Commencement date
May 1,2025
Annual lease payment due at the beginning of
each year, beginning with May 1,2025
$17,865.02
Bargain purchase option price at end of lease term
$7,000
Lease term
5 years
Economic life of leased equipment
10 years
Lessor's cost
$65,000
Fair value of asset at May 1,2025
$85,000.10
Lessor's implicit rate
6%
Lessee's incremental borrowing rate
6%
The collectibility of the lease payments by Oriole is probable.
Click here to view factor tables.
(For calculation purposes, use 5 decimal places as displayed in the
Prepare a lease amortization schedule for Sage Hill for the 5-year lease term. (Round answers to 2 decimal places, e e.5,275.15.)factor table provided.)
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