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Current Attempt in Progress The following facts pertain to a non-cancellable lease agreement between Wildhorse Leasing Corporation and McKee Electronics Ltd., a lessee, for a

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Current Attempt in Progress The following facts pertain to a non-cancellable lease agreement between Wildhorse Leasing Corporation and McKee Electronics Ltd., a lessee, for a computer system: The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties about costs that have not yet been incurred by the lessor. McKee Electronics, the lessee, assumes responsibility for all repairs and maintenance costs, which amount to $2,500 per year and are to be paid each October 1, beginning October 1,2023, by the lessee directly to the suppliers. The asset will revert to the lessor at the end of the lease term. The straight-line depreciation method is used for all equipment. The following amortization schedule for the lease obligation has been prepared correctly for use by both the lessor and the lessee in accounting for this lease using ASPE. The lease is accounted for properly as a capital lease by the lessee and as a direct financing lease by the lessor. Assuming that Wildhorse Leasing Corporation's accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to 0 decimal places, e.g. 5,275.) 1. What items and amounts will appear on the lessor's income statement for the year ended September 30, 2024 ? 2. What items and amounts will appear on the lessor's balance sheet at September 30, 2024? 3. What items and amounts will appear on the lessor's income statement for the year ended September 30, 2025? 4. What items and amounts will appear on the lessor's balance sheet at September 30, 2025

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