Cheyenne Incorporated leases a piece of equipment to Sage Hill Corporation on January 1, 2020. The lease agreement called for annual rental payments of $4,590 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $24,000, a book value of $19,000, and both parties expect a residual value of $8,400 at the end of the lease term, though this amount is not guaranteed. Cheyenne set the lease payments with the intent of earning a 5% return, and Sage Hill is aware of this rate. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Determine the nature of the lease to both Cheyenne and Sage Hill. The lease is a/an lease to Cheyenne. The lease is a/an lease to Sage Hill. Prepare the lense amortization schedule(s) for Sage Hill for all 4 years of the lease. (Hound answers to o docimal places, e.g. 5,275) Cheyenne Incorporated leases a piece of equipment to Sage Hill Corporation on January 1, 2020. The lease agreement called for annual rental payments of $4,590 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $24,000, a book value of $19,000, and both parties expect a residual value of $8,400 at the end of the lease term though this amount is not guzanteed. Cheyenne set the lease payments with the intent of earning a 5% return, and Sage Hill is aware of this rate. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Prepare the lease amortization schedule(s) for Sage Hill for all 4 years of the lease. (Round answers to 0 decimal places, e.8. 5.275.) Question 3 of 4 eTextbook and Media List of Accounts (c) Cheyenne Incorporated leases a piece of equipment to Sage Hill Corporation on January 1, 2020. The lease agreement called for annual rental payments of $4,590 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $24,000, a book value of $19,000, and both parties expect a residual value of $8,400 at the end of the lease term, though this amount is not guaranteed. Cheyenne set the lease payments with the intent of earning a 5% return, and Sage Hill is aware of this rate. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Determine the nature of the lease to both Cheyenne and Sage Hill. The lease is a/an lease to Cheyenne. The lease is a/an lease to Sage Hill. Prepare the lense amortization schedule(s) for Sage Hill for all 4 years of the lease. (Hound answers to o docimal places, e.g. 5,275) Cheyenne Incorporated leases a piece of equipment to Sage Hill Corporation on January 1, 2020. The lease agreement called for annual rental payments of $4,590 at the beginning of each year of the 4-year lease. The equipment has an economic useful life of 6 years, a fair value of $24,000, a book value of $19,000, and both parties expect a residual value of $8,400 at the end of the lease term though this amount is not guzanteed. Cheyenne set the lease payments with the intent of earning a 5% return, and Sage Hill is aware of this rate. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Prepare the lease amortization schedule(s) for Sage Hill for all 4 years of the lease. (Round answers to 0 decimal places, e.8. 5.275.) Question 3 of 4 eTextbook and Media List of Accounts (c)
