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a-e, for parts c and d also include income statement Core Co. leased a piece of manufacturing equipment from E-So Co. with the following terms:
a-e, for parts c and d also include income statement
Core Co. leased a piece of manufacturing equipment from E-So Co. with the following terms: Annual lease payment: $550,000 Term of lease: 5 years Interest rate; 4% Lease commences on January 1,2023 Payments are made on December 31 of each year in the lease term a. Compute the value of the right-of-use asset and the lease liability on the date the lease commences, b. Prepare a lease lability amortization schedule and night-of-use asset amortization schedule for the lessee. c. Prepare a financial statement effects template to show the effects for Core Co. for January 1, 2023-December 31, 2024, if the lease is classified as a finance lease. d. Prepare a financial statement effects template to show the effects for Core Co. for January 1, 2023-December 31, 2024, if the lease is classified as an operating lease e. Show the the right-of-use asset value over the term of the lease for finance vis operating lease classification. - Note: Use negotive signs with your answers, when appropriate. - Note: Select ' N/A' as your answer if a part of the accounting equation is not affected - Noter Round answers to the nesrest whole dollar. a. Value of the right-of-use asset and lease liability on the date the lease commences =3 b. Lease liability amortization schedule Right-of-use Asset Amortization Schedule - operating lease c. Finance lease D MDCrant 1atated Please answer all parts of the Step by Step Solution
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