On January 1, 2018, Key Leasing Company (KLC) acquired a fleet of stock vehicles to be leased to Pennsylvania River Company. KLC paid $262,900 to acquire the vehicles, which is also the fair value of the fleet. The lease terms follow. (Click the icon to view the terms of the lease.) Read the requirements. Requirement a. Classify the lease as either a finance lease or an operating lease for Pennsylvania River Company, the lesson Before completing the requirement identify the present value of the lease payments. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculation. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, XXXXXX. Round your final answer to the nearest whole dollar.) The present value (PV) of the payments due under the lease is $ Requirements a. Classify the lease as either a finance lease or an operating lease for Pennsylvania River Company, the lessee. b. Prepare the journal entries at lease commencement and the first lease payment for the lessee. c. Prepare an amortization table for the lease. d. Prepare the journal entries at the end of the first year and for the second lease payment for Pennsylvania River Company, the lessee. Print Print Done Done] On January 1, 2018, Key Leasing Company (KLC) acquired a fleet of stock vehicles to be leased to Pennsylvania River Company. KLC paid $262,900 to acquire the vehicles, which is also the fair value of the fleet. The lease terms follow. (Click the icon to view the terms of the lease.) Read the requirements. Requirement a. Classify the lease as either a finance lease or an operating lease for Pennsylvania River Company, the lesson Before completing the requirement identify the present value of the lease payments. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculation. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, XXXXXX. Round your final answer to the nearest whole dollar.) The present value (PV) of the payments due under the lease is $ Requirements a. Classify the lease as either a finance lease or an operating lease for Pennsylvania River Company, the lessee. b. Prepare the journal entries at lease commencement and the first lease payment for the lessee. c. Prepare an amortization table for the lease. d. Prepare the journal entries at the end of the first year and for the second lease payment for Pennsylvania River Company, the lessee. Print Print Done Done]
