Lease Problem #2

Assume the same facts as lease problem #1, except that the economic life of the asset is five years, and the asset is originally on LOs books at a cost of $250,177. Prepare the entries required for the first year of this lease on both the books of the lessee and the lessor, first under old GAAP, and then under new GAAP.

Prepare only journal entries and NO T Accounts. Show all math and what math you used to arrive at your numbers while preparing the journal entries. Any and all math that is not clearly described or has to be interpreted on what math you used and how you arrived at your answers will not be given credit.