The following relate to an operating lease agreement for Ava Company the lessor: The...
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Accounting
The following relate to an operating lease agreement for Ava Company the lessor:
- The lease term is 3 years, beginning January 1, 2018.
- The leased asset cost the lessor $267,600 and had a useful life of twelve years with no residual value. The lessor uses straight-line depreciation for its depreciable assets.
- Annual lease payments at the beginning of each year were $34,190.
- Incremental costs of negotiating costs of negotiating and consummating the completed lease transaction incurred by the lessor were $5,730
What is the net income Ava will recognize the 1st year of these lease?
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