38 The amount to be recorded as depreciation expense for 2019 if the residual value was guaranteed by the lessee would be Round to the nearest dollar a $23,915 b $15,943 c $17,333 d $22,648 e $25,991 39 Working with the assumptions that the residual value was guaranteed by the lessee and that you are now at January 1, 2029 On that date, the fair market value of the equipment was determined to be $9,450 The required journal entry entries prepared by WIN, to record all the effects of the lease ending would be a DEBIT Accumulated Depreciation Leased Asset $226,479 DEBIT Loss on Return of Leased Asset $14,150 DEBIT Interest Payable $1,748 DEBIT Obligation Under Capital Lease $21,852 CREDIT Right of Use Assets $250,079 CREDIT Cash $14,150 b DEBIT Loss On Return Of Leased Asset $14,150 CREDIT Cash $14,150 c DEBIT Obligation Under Capital Lease $250,079 DEBIT Loss on Return of Leased Asset $14,150 CREDIT Right of Use Assets $250,079 CREDIT Cash $14,150 d DEBIT Obligation Under Capital Lease $21,852 CREDIT Right of Use Assets $7,702 CREDIT Cash $14,150 e No journal entry required Not Ordinary Drones (NOD), Inc , a lessor, leased a drone to Worldz Information Network, Ltd , WIN , a lessee, on January 1, 2019 The following information relates to the leased asset and the lease agreement Fair value of leased drone $Undisclosed Lease 10 years Useful life 15 years Payment Due January 1 Payment frequency Annual Annual Instalments starting January 1, 2019 $33,000 Estimated residual value at end of the lease, as stated in the problem $23,600 Interest rate implicit in the lease (unknown to the lessee 7 Interest rate incremental to the lessee 8 Ownership of drone reverts to lessor at end of lease term Year end for both companies December 31 Amortization method Straight line Accounting standards used NOD ASPE WIN IFRS REQUIRED Select the one best answer to each of the questions listed below and input it in the computer

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[38] The amount to be recorded as depreciation expense for 2019 if the residual value was guaranteed by the lessee would be [Round to the

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[38] The amount to be recorded as depreciation expense for 2019 if the residual value was guaranteed by the lessee would be [Round to the nearest dollar]

$23,915.

$15,943.

$17,333.

$22,648.

$25,991.

[39] Working with the assumptions that the residual value was guaranteed by the lessee and that you are now at January 1, 2029. On that date, the fair market value of the equipment was determined to be $9,450. The required journal entry/entries prepared by WIN, to record all the effects of the lease ending would be

DEBIT-Accumulated Depreciation - Leased Asset [$226,479]; DEBIT-Loss on Return of Leased Asset [$14,150]; DEBIT-Interest Payable [$1,748]; DEBIT Obligation Under Capital Lease [$21,852]; CREDIT-Right of Use Assets [$250,079]; CREDIT-Cash [$14,150].

DEBIT-Loss On Return Of Leased Asset [$14,150]; CREDIT-Cash [$14,150].

DEBIT-Obligation Under Capital Lease [$250,079]; DEBIT-Loss on Return of Leased Asset [$14,150]; CREDIT-Right of Use Assets [$250,079]; CREDIT-Cash [$14,150].

DEBIT-Obligation Under Capital Lease [$21,852]; CREDIT-Right of Use Assets [$7,702]; CREDIT-Cash [$14,150].

No journal entry required.

Not Ordinary Drones (NOD), Inc., a lessor, leased a drone to Worldz Information Network, Ltd., [WIN], a lessee, on January 1, 2019. The following information relates to the leased asset and the lease agreement: Fair value of leased drone $Undisclosed Lease 10 years Useful life 15 years Payment Due January 1 Payment frequency Annual Annual Instalments starting January 1, 2019 $33,000 Estimated residual value at end of the lease, [as stated in the problem] $23,600 Interest rate implicit in the lease (unknown to the lessee] 7% Interest rate incremental to the lessee 8% Ownership of drone reverts to lessor at end of lease term Year end for both companies December 31 Amortization method Straight line Accounting standards used - NOD ASPE - WIN IFRS REQUIRED: Select the one best answer to each of the questions listed below and input it in the computer