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Can someone please show me the steps for this Re Solution Form, Requirement 2. XYZ Corp., as lessee, entered into a noncancellable lease on Jan
Can someone please show me the steps for this
Re Solution Form, Requirement 2. XYZ Corp., as lessee, entered into a noncancellable lease on Jan 1, 20x1, under which it will lease equipment for five years having an economic life of six years. The equipment reverts to the lessor at the end of the lease term. The lease requires annual payments of $10,000, net of executory costs, beginning on Jan 1, 20x1. XYZ's incremental borrowing rate is 9%. XYZ follows US GAAP. Required: (a) Prepare a combined schedule to compute (1) the capitalized cost of the lease at its inception, and (2) straight-line depreciation for 20x1 (b) Compute interest expense for 20x1 and 20x2. An amortization schedule for the first two years is recommended. Circle all final answers. % PV PVAD 5 0.6499 4.2397 9 0.5963 4.8897 n 9 6 to search Use this space or the white space below to show your work Req 25-2: Interest Req 2a. Capitalized Costs 20X1. Depreciation Expense 20X1 20X2 w Prisc Insert A F11 F12 F10 F9 FZ FB 11 + & * 00 9 0 6 7 { Re Solution Form, Requirement 2. XYZ Corp., as lessee, entered into a noncancellable lease on Jan 1, 20x1, under which it will lease equipment for five years having an economic life of six years. The equipment reverts to the lessor at the end of the lease term. The lease requires annual payments of $10,000, net of executory costs, beginning on Jan 1, 20x1. XYZ's incremental borrowing rate is 9%. XYZ follows US GAAP. Required: (a) Prepare a combined schedule to compute (1) the capitalized cost of the lease at its inception, and (2) straight-line depreciation for 20x1 (b) Compute interest expense for 20x1 and 20x2. An amortization schedule for the first two years is recommended. Circle all final answers. % PV PVAD 5 0.6499 4.2397 9 0.5963 4.8897 n 9 6 to search Use this space or the white space below to show your work Req 25-2: Interest Req 2a. Capitalized Costs 20X1. Depreciation Expense 20X1 20X2 w Prisc Insert A F11 F12 F10 F9 FZ FB 11 + & * 00 9 0 6 7 {Step by Step Solution
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