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Lease Accounting. On January 1 , Moran Inc. entered into a noncancelable 1 0 - year lease for computer equipment with a fair value of
Lease Accounting. On January Moran Inc. entered into a noncancelable year lease for computer equipment with a fair value of $ million and requiring annual $ milion yearend lease payments. The company's yearend is December The implicit interest rate is Required Assuming that the lease is accounted for as a finance lease, what financial effects will be recorded in the financial statements with regard to the lease on January Note: Use Excel and round to the nearest million ie show as A Finance lease asset and a finance lease liability will be capitalized on the balance sheet for: $ million. Assuming that the lease is accounted for as a finance lease, what financial effects will be recorded with regard to the lease on December at the end of the first year Note: Round all entries to three decimal points. Use rounded amounts in any further calculations. tableItemIncreaseDecreaseCash$millionInterest expense,hat$millionLease obligation,$millionAmortization expense,$millionLeased asset,,$million What are the total expenses associated with the lease in the second year if it is accounted for as an operating lease? As a finance lease? Note: Round all entries to three decimal points. tableExpense Item millionsOperating Lease,Finance LeaseOperating lease expense,$$
Lease Accounting.
On January Moran Inc. entered into a noncancelable year lease for computer equipment with a fair value of $ million and requiring annual $ milion yearend lease payments. The company's yearend is December The implicit interest rate is
Required
Assuming that the lease is accounted for as a finance lease, what financial effects will be recorded in the financial statements with regard to the lease on January
Note: Use Excel and round to the nearest million ie show as
A Finance lease asset and a finance lease liability will be capitalized on the balance sheet for: $ million.
Assuming that the lease is accounted for as a finance lease, what financial effects will be recorded with regard to the lease on December at the end of the first year
Note: Round all entries to three decimal points. Use rounded amounts in any further calculations.
tableItemIncreaseDecreaseCash$millionInterest expense,hat$millionLease obligation,$millionAmortization expense,$millionLeased asset,,$million
What are the total expenses associated with the lease in the second year if it is accounted for as an operating lease? As a finance lease?
Note: Round all entries to three decimal points.
tableExpense Item millionsOperating Lease,Finance LeaseOperating lease expense,$$
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