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BATE Question 3 The following facts pertain to a noncancelate lease agreement between Marin Leasing Company and Head and Company, a lesse Inception date: May
BATE Question 3 The following facts pertain to a noncancelate lease agreement between Marin Leasing Company and Head and Company, a lesse Inception date: May 1, 2017 Annual lease payment due at the beginning of each year, beginning with May 1, 2017 $23,116,34 Bargain purchase option price at end of lease term $4,200 Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $71.000 Fair value of asset at May 1, 2017 $99,000 Lessor's implicit rate 10 Lessee's incremental borrowing rate 10 The collectibility of the lease payment is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the less. These mes responsibility for all sectory costs. The expected residual value of the equipment at the end of 5 (10) years is $12,000 (10) Click here to view factor tables Prepare a lease amortization schedule for Headland Company for the 5-year lease term. (Round present value factor calculations to decimal places... 125126 and found answers to decimal places... 15.25) HEADLAND COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Plus interest on Reduction of Lease Date Liability Liability Lease Liability 5/1/17 99000 5/1/17 23116.34 5/1/18 23116.34 5/1/19 23116.34 5/1/20 23116.34 5/1/21 23116.34 4/30/22 4200 119751.10 5 USE OF ACCOUNTS DI
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