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Current Attempt in Progress On January 2, 2025, Oriole Leasing Company leases equipment to Grouper Co. with 5 equal annual payments of $163000 each.
Current Attempt in Progress On January 2, 2025, Oriole Leasing Company leases equipment to Grouper Co. with 5 equal annual payments of $163000 each. payable beginning January 2, 2025. Grouper Co. agrees to guarantee the $161000 residual value of the asset at the end of the lease term. The expected value of the residual value is $58000. Grouper's incremental borrowing rate is 9%, however it knows that Oriole's implicit interest rate is 7%. What journal entry would Grouper make at January 2, 2025 to record the lease? PV Annuity Due PV Ordinary Annuity PV Single Sum 7%, 5 periods 4.38721 4.10020 0.71299 9%, 5 periods 4.23972 3.88965 0.64993 Right-of-Use Asset 715115 Cash 163000 Lease Liability 552115 Right-of-Use Asset 741771 Cash 163000 Lease Liability 578771 Right-of-Use Asset 788553 Cash 163000 Lease Liability 625553 Right-of-Use Asset 625553 Lease Liability 625553
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