$1$

Pierce Company has a machine with a fair market value of $$500,000$ on the date the machine is leased to Echo Corp. The lease is for $8$ years and the machine has an

unguaranteed residual value of $$50,000.$ If Pierce's implicit interest rate is $2\%$ what is the amount of the $8$ lease payments made at the beginning of each lease year?

$$72\mathrm{.}628$

$$61\mathrm{.}205$

$$62\mathrm{.}429$

$$56\mathrm{.}250$

$2$

If a company leases equipment to another company and the lease is an operating lease, the lessor records

None of these.

Depreciation expense.

Amortization expense.

Interest revenue.

$3$

The first of ten annual lease parments of $$20,000$ dive at the begiening of each year was rectived and recorded on January $1,2021.$ Farm had purchased the equipment for

$$70\mathrm{.}000.$ What amount of interest revenue from the lease should Ellas Co$,$ report on its December $31,2021$ income statement?

$$12,591$

$$10,791$

$$20,000$

$$9,209$

$4$

The following a partial Lease Amortization Schedule for Pettiette, Inc., the lessee

If Pettiette's fiscal year end is $12/31$ what amount should they list as a noncurrent liability on the $12/31/2020$ balance sheet?