A. What would be the lease payments that bay manufacturing lessor would require from XYZ lessee?

B. At what amount will the bay Manufacturing lessor capitalize a lease receivable asset on the balance sheet?

C. At january 1, 2023 date of second lease payment, bay manufacturing lessor will record a journal entry that includes a

at december 31, 2022, end of first yea, XYZ lessee will record a journal entry that includes a?

D. At what amount will XYZ lessee capitalize a Right-of-use asset and lease liability?

On January 1,222.XYZ Lesse usedequipment from Bay Manufacturing at a Price of 5176,945 Bay Manufacturing has a cost of $124,000 in the asset Lease specifics annual payments beginning January 1, 2022, and on each January thereafter through 2025. The 4-year term ends on December 31, 2005, Bay Manufacturing estimates a useful life of 5 years Bay Manufacturing estimates a residual value of $25,000 . The residual value will be Guaranteed by the Lessee XYZ Les goes that the equipment will be worth atome $25,000 or more at the end of the lease um . There is no purchase option, and the equipment reverts back to the Lessor at the end of the 4-year period . The implicit rate on the lease is 5%, and XYZ LOGO is aware of that rate Assume Straight Line Depreciation is used on the Right of Use Asset PVAD Factor, nadi-5% 3.72325 PVAD Factor, n5, 15% 454505 PV of 51 Factor15% 82270 PV of $1 Factor 5, 1-5% 78353