-12 11 Question 2 of 2 Current Attempt in Progress Tamarisk Dairy leases its milking equipment from Vaughn Finance Company under the following lease terms. 1 2 3 The lease term is 10 years, noncancelable, and requires equal rental payments of $29,300 due at the beginning of each year starting January 1, 2020 The equipment has a fair value at the commencement of the lease (January 1, 2020) of $220,857 and a cost of $239,000 on Vaughn Finance's books. It also has an estimated economic life of 15 years and an expected residual value of $13,100, though Tamarisk Dairy has guaranteed a residual value of $18.400 to Vaughn Finance The lease contains no renewal options, and the equipment reverts to Vaughn Finance upon termination of the lease. The equipment is not of a specialized use. Tamarisk Dairy's incremental borrowing rate is 8% per year. The implicit rate is also 8% Tamarisk Dairy depreciates similar equipment that it was on a straight-line basis. Collectibility of the payments is probable 4 5 6. Click here to view factor tables Evaluate the criteria for classification of the lease and describe the nature of the lease. In general discuss how the lessee and ser 21) Homework Question 2 of 2 Tyrforation of describeature of the lease. In gee how the letter and leor should account for the lease transaction For the lessen, its and for the lessor, it is Textbook and Media List of Accounts Prepare the journal entries for the lossecadessor at January 1,2020, and December 31, 2020 (the less and lessor year od Amerverincenties Credit account titlegre automatically indented when toont is entered. Do not indent money no entry lareind select "No Entry for the account titles and enter for the amounts. Round present value factor calculations to decimal places 125125 and final owers to decimal plans... 5.250. Date Account Titles and Explanation Debit Credit Leste (To record these Question 2 of 2 - 2 Lotor (To record the 1 (to record lase payment) Lever (To record interest Chapter 21 Homework Question 2 of 2 .12 (To record mortization Textbook and Media List of Accounts What would have been the amount of these labiiy recorded by the upon the commencement of the lease Rounds to decina poseg 5.250 The residual value of 518/400 had beated by a third party at the le 5 The residual vat of 518,600 had not been guarantee textDOON MOVIE List of Accounts On the lessor's books, what would be the amount recorded as the lease receivable at the commencement of the lease, assuming (Round answers to decimal places.es 5.250) (1) 5 The residual value of $18,400 had been guaraneed by a third party? The residual value of $18.400 had not been guaranteed at the $ 12) Textbook and Media List of Accounts Attempts: 0 of Sused Are Before MacBook Al