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D Question 10 1 pts . On January 1, 2018, Gold Star Leasing Company leases equipment to Brick Co. requiring 5 equal annual payments of
D Question 10 1 pts . On January 1, 2018, Gold Star Leasing Company leases equipment to Brick Co. requiring 5 equal annual payments of $160,000, payable beginning January 1, 2018. The residual has a unguaranteed value of $100,000 at the end of the lease term. The lease is determined to be an operating lease.Brick's incremental borrowing rate is 10%, however it knows that Gold Star's (lessor) implicit interest rate is 8%. The journal entry Brick Co. would make on December 31 to record the lease expense for 2018 a: Debit to lease expense $160,000 O Credit to right of use asset $689,940 O Credit to cash $137,988 O Debit to right of use asset $667,179
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