Accounting for Leases: On December 31, 2024, Home Depot (the lessee) signed a 10-year, non-cancellable lease agreement to lease retail space from Crossroads Properties Inc. (the lessor). The terms of the lease are: (a) (b) (c) (d) (e) (f) (g) Annual lease payments of $71,830 beginning on December 31, 2024. There are no executory costs associated with this lease. The Present Value of the Minimum Lease Payments is equal to the Fair Market Value of the Leased Asset at the inception of the lease. The leased asset has an estimated life of 12 years, a guaranteed residual value of $10,000 and an expected residual value of $7,000. The lessee's incremental borrowing rate is 8%. The lessor's rate of return is unknown, The lease does not provide for a transfer of title and the asset has no alternative use. The lessee will amortize the leased asset using straight-line amortization. Present Value of an Annuity Due 8% 1.00000 1.92593 2.78326 3.57710 4.31213 4.99271 5.62288 6.20637 6.74664 7.24689 Period 1 2 3 4 5 6 7 8 9 10 Period 1 2 3 4 5 6 7 8 9 5% 1.00000 1.95238 2.85941 3.72325 4.54595 5.32948 6.07569 6.78637 7.46321 8.10782 5% 0.95238 0.90703 0.86384 0.82270 0.78353 0.74622 0.71068 -0.67684 0.64461 0.61391 6% 1.00000 1.94340 2.83339 3.67301 4.46511 5.21236 5.91732 6.58238 7.20979 7.80169 Present Value of an Single Sum 6% 0.94340 0.89000 0.83962 0.79209 0.74726 0.70496 0.66506 -0.62741 0.59190 0.55839 8% 0.92593 0.85734 0.79383 0.73503 0.68058 0.63017 0.58349 0.54027 0.50025 0.46319 10% 1.00000 1.90909 2.73554 3.48685 4.16986 4.79079 5.35526 5.86842 6.33493 6.75902 12% 1.00000 1.89286 2.69005 3,40183 4.03735 4.60478 5.11141 5.56376 5.96764 6.32825 10% 0.90909 0.82645 0.75132 0.68301 0.62092 0.56447 0.51316 0.46651 0.42410 0.38554 12% 0.89286 0.79719 0.71178 0.63552 0.56743 0.50663 0.45235 0.40388 0.36061 0.32197

Accounting for Leases: On December 31, 2024, Home Depot (the lassee) signed a 10-year, non-cancellable lease agreement to lease retall spece from Crossroads Properties Inc. (the lessor). The terms of the lease are: (a) Annual lease payments of $71,830 bepining on December 31,2024 . (b) There are no executory costs associated with thils lease. (c) The Present Vahue of the Minimum Lease Payments is equal to the Fair Market Vahe of the Leased Asset at the inception of the lease. (d) The leased asset has an estimated life of 12 yoars, a guaranteed residual value of $10,000 and an expected residual value of $7,000. (e) The lessee's incremental borrowing rate is 8%. The lessor's rate of return is unichown. (f) The lease does not provide for a transfer of title and the asset has no alternatve use (a) The lessee will amortize the leased asset using straight-llne amortization