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Facts for Questions 11 - 15 On January 1, 2021, Road Runner Inc. sold a building used in their business to Wiley Coyote Inc. and
Facts for Questions 11 - 15 On January 1, 2021, Road Runner Inc. sold a building used in their business to Wiley Coyote Inc. and simultaneously leased it back for 5 years. Other pertinent information includes: Road Runner's Building Cost $5,500,000 Road Runner's Accumulated Depreciation $ 500,000 Sales Price of Building to Wiley Coyote $6,000,000 Remaining Useful Economic Life 20 Years Present Value of Future Lease Payments $1,750,000 . . 11.What profit (loss) if any, will Road Runner Inc. recognize on the sale- leaseback transaction in 2021? 12. How would Road Runner classify its lease of the building from Wiley Coyote? 13. What is Road Runner's Journal Entry to record the lease? 14. How would Wiley Coyote classify its lease of the building to Road Runner? 15. What is Wiley Coyote's Journal Entry to record the lease
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