include formulas

View Policies Current Attempt in Progress Assume that on December 31, 2019, Marin Aerospace signs a 8-year, non-cancelable lease agreement to lease a hanger from Aero Field Management Company. The following information pertains to this lease agreement: 1. The agreement requires equal rental payments of $164,510 beginning on December 31, 2019. 2. The fair value of the building on December 31, 2019 is $1,114,740. 3. The building has an estimated economic life of 10 years, a guaranteed residual value of $50,800, and an expected residual value of $35,700. Marin depreciates similar buildings on the straight-line method. 4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. 5. . Marin's incremental borrowing rate is 6% per year. The lessor's implicit rate is not known by Marin. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) a) Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2019, 2020, and 2021. Marin's fiscal year-end is December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places eg. 5,275.) Date Account Titles and Explanation Debit Credit (To record the lease) (To record first lease payment) be (To record amortization of the right-of-use asset) (To record second lease payment) (To record amortization of the right-of-use asset) (To record third lease payment) UVCU Attempts: unlimited Submit Answer (b). Suppose the same facts as above, except that Marin incurred legal fees resulting from the execution of the lease of $12,100, and received a lease incentive from Aero Field to enter the lease of $16,100. How would the initial measurement of the lease liability and right-of-use asset be affected under this situation? Right-of-use asset CA e Textbook and Media List of Accounts Save for Later Submit Answer Attempts: unlimited (c) List of Accounts Save for Later Attempts: unlimited Submit Answer (C). Suppose that in addition to the $164,510 annual rental payments, Marin is also required to pay $12,300 for insurance costs each year on the building directly to the lessor, Aero Field. How would this executory costaffect the initial measurement of the lease liability and right-of-use asset? (Round answer to 0 decimal places, e.g. 5,275.)" Lease liability $ e Textbook and Media List of Accounts have for Later Attempts: unlimited Submit Answer (d) (d) Return to the original facts in the problem. Now suppose that, at the end of the lease term, Marin took good care of the asset and Aero Field agrees that the fair value of the asset is actually $60,000. Record the entry for Marin at the end of the lease to return control of the hanger to Aero Field (assuming the accrual of interest on the lease liability has already been made). (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit EEN e Textbook and Media List of Accounts Save for Later Attempts: unlimited Submit