Need only part 5. Supporting info on the right

For the lessee, A Alternative formats The capitalized value of the lease is $130,000 2. The beginning carrying value of the liability is $95,521 3. The interest rate to calculate interest is 12% Make the journal entries for the first year of the lease term. ACC 302 - Leasing - Lessee Bargain Purchase Option LEASED TRUCK $130,000 A lessor and lessee enter into a lease agreement whereby an 18 wheeler with a fair value of $130,000 and CASH $34,479 a useful life of five years will be leased for a period of four years. The lease payments will be made at the LEASE LIABILITY $95,521 beginning of each year. The residual value at the end of the lease term is expected to be $20,000. The residual value at the end of the asset's useful life is expected to be $15,000. At the end of two years the INTEREST EXPENSE $11,462.52 lessee has the option to purchase the truck for 65,000. The fair market value of the truck at that time is estimated to be 90,000. The lessor requires a rate of return of 12% on his net investment The lessee can INTEREST PAYABLE $11,462.52 borrow to purchase the truck at a 10% interest rate. The lessee knows the lessor's implicit rate AMORTIZATION EXPENSE $32,500 The amount of the annual lease payments is ACCUM AMORTIZATION $32,500 5. Make all lessee journal entries for the rest of the lease term. Previous Next + 130% Page 1 of 1 95 words Focus Co E MacBook Pro