Kingbird Leasing Company signs a lease agreement on January $1,2025,$ to lease electronic equipment to Blossom

Company. The term of the non$-$cancelable lease is $2$ years, and payments are required at the end of each year. The

following information relates to this agreement.

Blossom has the option to purchase the equipment for $$12,000$ upon termination of the lease. It is not

reasonably certain that Blossom will exercise this option.

The equipment has a cost of $$100,000$ and fair value of $$120,000$ to Kingbird Leasing. The useful economic life

is $2$ years, with a residual value of $$12,000.$

Kingbird Leasing desires to earn a return of $6\%$ on its investment.

Collectibility of the payments by Kingbird Leasing is probable.Kingbird Leasing Company signs a lease agreement on January $1,2020,$ to lease warehouse equipment to Biossom Company The term of the non$-$cancelable lease is $2$ years, and payments are required at the end of each year. The following informationrelates to this agreement: $1.$ Blossom has the option to purchase the equipment for $\backslash (\backslash$$ $19\mathrm{.}700\backslash )$ upon termination of the lease. It is not reasonably certain. that Blossom will exercise this option. $2.$ The equipment has a cost of $\backslash (\backslash$$ $167,000\backslash )$ and fair value of $\backslash (\backslash$$ $192,400\backslash )$ to Kingbird Leasing The useful pronomic life is $2$ yoars, with a residual value of $\backslash (\backslash$$ $19,700\backslash ).3.$ Kingbird Leasing desires to earna return of $\backslash (6\backslash \%\backslash )$ onits investment. $4.$ Collectibility of the payments by Kingbird Leasing is probable. Click here to view factor tables.