Question
Larkspur Corporation recorded a right-of-use asset for $410,400 as a result of a finance lease on December 31, 2016. Larkspur's incremental borrowing rate is 10%,
Larkspur Corporation recorded a right-of-use asset for $410,400 as a result of a finance lease on December 31, 2016. Larkspur's incremental borrowing rate is 10%, and the implicit rate of the lessor was not known at the commencement of the lease. Larkspur made the first lease payment of $64,784 on on December 31, 2016. The lease requires 9 annual payments. The equipment has a useful life of 9 years with no residual value
Prepare Larkspur's December 31, 2017, entries.
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
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