The following facts pertain to a non-cancelable lease agreement between Sheridan Leasing and Skysong Group,...
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Accounting
The following facts pertain to a non-cancelable lease agreement between Sheridan Leasing and Skysong Group, a lessee (amounts in thousands).
| Commencement date | May 1, 2022 | ||
| Annual lease payment due at the beginning of | |||
| each year, beginning with May 1, 2022 | 17,196.44 | ||
| Bargain purchase option price at end of lease term | 3,360 | ||
| Lease term | 5 | years | |
| Economic life of leased equipment | 10 | years | |
| Lessors cost | 54,600 | ||
| Fair value of asset at May 1, 2022 | 76,440 | ||
| Lessors implicit rate | 8 | % | |
| Lessees incremental borrowing rate | 8 | % |
The collectibility of the lease payments by Sheridan is probable.
Prepare a lease amortization schedule for Skysong for the 5-year lease term. (Round answers to 2 decimal places, e.g. 5,275.15.)
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