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Concord Company manufactures a check-in kiosk with an estimated economic life of 10 years and leases it to Marigold Chicken for a period of 9
Concord Company manufactures a check-in kiosk with an estimated economic life of 10 years and leases it to Marigold Chicken for a period of 9 years. The normal selling price of the equipment is $167,103, and its unguaranteed residual value at the end of the lease term is estimated to be $24,200. Marigold will pay annual payments of $20,300 at the beginning of each year. Concord incurred costs of $145,800 in manufacturing the equipment and $2,300 in sales commissions in closing the lease. Concord has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 5%. Marigold Chicken has an incremental borrowing rate of 5%. The lessor's implicit rate is unknown to the lessee. Click here to view factor tables. Prepare a 9-year lease amortization schedule. (Round answers to 0 decimal places e.g. 58,970.) MARIGOLD CHICKEN (Lessee) Lease Amortization Schedule (Annuity-due basis and URV) Reduction of Lease Lease Interest on Lease Liability Annual Lease Payment Liability Liability $ 0 $ 0 $ 0 $ 167103 20,300 0 20,300 146803 20,300 7340 12960 133843 20,300 6692 13608 120235 20,300 6012 14288 105947 20,300 5297 15003 90944 20,300 4547 15753 75191 20,300 3760 16540 58651 20,300 2933 17367 41284 20,300 2064 18236 23048 $ $ $ Save for Later Attempts: 0 of 1 used Submit
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