Question
At the beginning of fiscal 2020, the county government signs a 2-year lease, with $50,000 paid at signing, and $50,000 due at the end of
At the beginning of fiscal 2020, the county government signs a 2-year lease, with $50,000 paid at signing, and $50,000 due at the end of fiscal 2020. The lease has an implicit interest rate of 3%, the present value of the lease payments is $98,544, and the leased equipment has an estimated life equal to the life of the lease, no residual value. The lease is reported in the general fund. What asset is reported for this lease in the governmental funds balance sheet at the end of fiscal 2020?
| A. | No asset is reported. |
| B. | Leased asset, $49,272 |
| C. | Leased asset, $98,544 |
| D. | Leased asset, $100,000 |
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