Intermediated Accounting II

Hello,

Can you help me with the attached problem?

Thank you

Exercise 21-14 On February 20, 2017, Larkspur Inc. purchased a machine for $1,520,400 for the purpose of leasing it. The machine is expected to have a 10-year life, no residual value, and will be depreciated on the straight-line basis. The machine was leased to Cullumber Company on March 1, 2017, for a 4-year period at a monthly rental of $20,100. There is no provision for the renewal of the lease or purchase of the machine by the lessee at the expiration of the lease term. Larkspur paid $31,680 of commissions associated with negotiating the lease in February 2017. (a) What expense should Cullumber Company record as a result of the facts above for the year ended December 31, 2017? $ Rent Expense (b) What income or loss before income taxes should Larkspur record as a result of the facts above for the year ended December 31, 2017? (Hint: Amortize commissions over the life of the lease.) $ Income from lease before taxes Don't show me this message again for the assignment