Current Attempt in Progress Sandhill Company leases a machine from Vollmer Corp. under an agreement which meets the criteria to be a nance lease for Sandhill. The six-year lease requires payment of $166000 at the beginning of each year, including $24600 per year for maintenance, insurance, and taxes. The incremental borrowing rate for the lessee is 9%; the lessor's implicit rate is 7% and is known by the lessee. The present value of an annuity due of 1 for six years at 9% is 4.88965. The present value of an annuity due of 1 for six years at 7% is 5.10020. Sandhill should record the leased asset at $721168. $811682. $691397. $846633. Blossom Corporation is a lessee with a finance lease. The asset is recorded at $860000 and has an economic life of 8 years. The lease term is 5 years. The asset is expected to have a fair value of $280000 at the end of 5 years, and a fair value of $90000 at the end of 8 years. The lease agreement provides for the transfer of title of the asset to the lessee at the end of the lease term. What amount of amortization expense would the lessee record for the first year of the lease? O $172000 O $154000 O $116000 O $96250Crane, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $454152, with the rst payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4- year useful life and no salvage value. If Crane, |nc.'s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Crane, Inc.) is 8%, what is the amount recorded for the leased asset at the lease inception? PV Annuity PV Ordinary % Annuity 8%, 4 periods 357710 3.31213 10%, 4 periods 3.48685 3.16987 $1504210 $1624547 531439603 551583560 Ivanhoe Co. bought equipment and Immediately leased it to Riggs Company on May 1, 2021. At that time the collectiblety of the lease payments was not probable. The lease expires on May 1, 2022. Riggs could have bought the equipment from Ivanhoe for $6000000 instead of leasing it. Ivanhoe's accounting records showed a book value for the equipment on May 1, 2021, of $4250000. Ivanhoe's depreciation on the equipment in 2021 was $640000. During 2021, Riggs paid $1332000 in rentals to Ivanhoe for the 8-month period. Ivanhoe incurred maintenance and other related costs under the terms of the lease of $106000 in 2021. After the lease with Riggs expires, Ivanhoe will lease the equipment to another company for two years. The income before income taxes derived by Ivanhoe from this lease for the year ended December 31, 2021, should be O $1332000. $586000. O $640000. O $1174000.The following information relates to Sheridan, Inc.: For the Year Ended December 31, 2020 2021 Plan assets (at fair value) $2280000 $2986000 Pension expense 905000 720000 Projected benefit obligation 2680000 3146000 Annual contribution to plan 950000 720000 Accumulated OCI (PSC) 770000 680000 The amount reported as the liability for pensions on the December 31,2021 balance sheet is $0. 55 160000. $680000. $3 146000