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E21-8 (Lessee Entries with Bargain-Purchase option) The following facts pertain to a noncancelable lease agreement between Mooney Leasing Company and Rode Company, a lessee May
E21-8 (Lessee Entries with Bargain-Purchase option) The following facts pertain to a noncancelable lease agreement between Mooney Leasing Company and Rode Company, a lessee May 1 Inception date: Annual lease payment due at the beginning of $21,227.65 each year, beginning with May 1.2014 7- 12, urchase option price at end of lease term Bargain 5 years 10 yea Lease term Economic life of leased equipment $65,000.00 Lessor's cost Fair value of asset at May 1, 2014 $91,000.00 10% Lessor's implicit rate Lessee's incremental borrowing rate 10%
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