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Could someone help me with this assignment, I keep getting it wrong. he following facts pertain to a noncancelable lease agreement between Blossom Leasing Company
Could someone help me with this assignment, I keep getting it wrong.
he following facts pertain to a noncancelable lease agreement between Blossom Leasing Company and Blue Company, a lessee. Inception date: May 1, 2017 Annual lease payment due at the beginning of each year, beginning with May 1, 2017 Bargain-purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate $18,758.38 $3,800 5 10 $71,000 $82,000 9 9 years years % % The collectability of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs. (c) Prepare a lease amortization schedule for Blue Company for the 5-year lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25125 and Round answers to 2 decimal places, e.g. 15.25.) Date 5/1/17 5/1/17 5/1/18 5/1/19 5/1/20 5/1/21 4/30/22 BLUE COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Reduction of Plus Interest on Lease BPO Liability Liability $ $ Lease Liability $ $ $ $ $Step by Step Solution
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