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need help on the second question On December 31, 2024. Wildhorse Company leased machinery from Blossom Corporation for an agreed-upon lease term of 3 years.
need help on the second question On December 31, 2024. Wildhorse Company leased machinery from Blossom Corporation for an agreed-upon lease term of 3 years. Wildhorse agreed to make annual lease payments of $14,500, beginning on Decernber 31,2024, The expected residual value of the machinery at the end of the lease term is $7,000. (a) What amount will Wildhorse record as its lease liability on December 31, 2024, if its incremental borrowing rate is 5% and the implicit rate of the lease is unknown? (For colculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places, eg. 5.275.) Click here to view factor tables. Lease liability Wildhorse guarantees a residual value of $7,000 at the end of the lease term. What if the expected residual value at the end of the lease term is $3,000 and Wildhorse guarantees a residual of $7,000 ? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places, eg. 5,275. Click here to view factor tables. Lease liability
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