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Exercise 21-10 The following facts pertain to a non-cancelable lease agreement between Sandhill Leasing Company and Teal Mountain Company, a lessee. May 1, 2020 Commencement
Exercise 21-10 The following facts pertain to a non-cancelable lease agreement between Sandhill Leasing Company and Teal Mountain Company, a lessee. May 1, 2020 Commencement date Annual lease payment due at the beginning of each year, beginning with May 1, 2020 Bargain purchase option price at end of lease term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2020 Lessor's implicit rate Lessee's incremental borrowing rate $15,349.90 $6,000 5 years 10 years $65,000 $76,000 4 % 4 % The collectibility of the lease payments by Sandhill is probable. Prepare a lease amortization schedule for Teal Mountain for the 5-year lease term. (Round answers to 2 decimal places, e.g. 5,275.15.) Annual Lease Payment Plus BPO TEAL MOUNTAIN COMPANY (Lessee) Lease Amortization Schedule Interest on Reduction of Lease Liability Liability Date Lease Liability 5/1/20 5/1/20 15349.90 X 5/1/21 15349.90 5/1/22 15349.90 5/1/23 15349.90 X 5/1/24 15349.90 4/30/25 6000 82750
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