On January 1, 2020, a machine was purchased for $400,000 by Younger Leasing Co The machine is expected to have a 10 year life with no salvage value Similar machines are depreciated on a straight line basis by Younger The machine was leased to Juniper Inc for 3 years on January 1, 2020, with annual rent payments of $69,560 due at the beginning of each year, starting January 1, 2020 The machine is expected to have a residual value at the end of the lease term of $260,000, though this amount is unguaranteed Assume an incremental borrowing rate of 8 and an implicit rate of 6 The present value of a $1 for 3 periods at 6 is 0 83962 and at 8 is 0 79383 The present value of an annuity due for 3 periods at 6 is 2 83339 and at 8 is 2 78326 Required Following US GAAP, prepare all necessary 2020 journal entries in the books of Juniper (the lessee) Please clearly indicate the dates for the journal entries Following US GAAP, what amounts will Juniper report on the Balance Sheet (any assets and liabilities) and Income Statement (any revenue or expenses) prepared on December 31, 2020, regarding this lease Please clearly indicate whether the expense reported in Income Statement, if any, is lease expense, interest expense, and or amortization expense Also clearly indicate the gross and net amount of assets reported, if any, in the Balance Sheet Following IFRS, prepare all necessary 2020 journal entries in the books of Juniper (the lessee) Please clearly indicate the dates for the journal entries Following IFRS, what amounts will Juniper report on the Balance Sheet (any assets and liabilities) and Income Statement (any revenue or expenses) prepared on December 31, 2020, regarding this lease Please clearly indicate whether the expense reported in Income Statement, if any, is lease expense, interest expense, and or amortization expense Also clearly indicate the gross and net amount of assets reported, if any, in the Balance Sheet For the fiscal year 2020, is there a difference in the expense reported by Juniper if it follows US GAAP versus IFRS If there is a difference, what is the main cause of that difference

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On January 1, 2020, a machine was purchased for $400,000 by Younger Leasing Co. The machine is expected to have a 10-year life with no

On January 1, 2020, a machine was purchased for $400,000 by Younger Leasing Co. The machine is expected to have a 10-year life with no salvage value. Similar machines are depreciated on a straight-line basis by Younger. The machine was leased to Juniper Inc. for 3 years on January 1, 2020, with annual rent payments of $69,560 due at the beginning of each year, starting January 1, 2020. The machine is expected to have a residual value at the end of the lease term of $260,000, though this amount is unguaranteed.

Assume an incremental borrowing rate of 8% and an implicit rate of 6%. The present value of a $1 for 3 periods at 6% is 0.83962 and at 8% is 0.79383. The present value of an annuity due for 3 periods at 6% is 2.83339 and at 8% is 2.78326.

Required:

Following US GAAP, prepare all necessary 2020 journal entries in the books of Juniper (the lessee). Please clearly indicate the dates for the journal entries.

Following US GAAP, what amounts will Juniper report on the Balance Sheet (any assets and liabilities) and Income Statement (any revenue or expenses) prepared on December 31, 2020, regarding this lease? Please clearly indicate whether the expense reported in Income Statement, if any, is lease expense, interest expense, and/or amortization expense. Also clearly indicate the gross and net amount of assets reported, if any, in the Balance Sheet.

Following IFRS, prepare all necessary 2020 journal entries in the books of Juniper (the lessee). Please clearly indicate the dates for the journal entries.

Following IFRS, what amounts will Juniper report on the Balance Sheet (any assets and liabilities) and Income Statement (any revenue or expenses) prepared on December 31, 2020, regarding this lease? Please clearly indicate whether the expense reported in Income Statement, if any, is lease expense, interest expense, and/or amortization expense. Also clearly indicate the gross and net amount of assets reported, if any, in the Balance Sheet.

For the fiscal year 2020, is there a difference in the expense reported by Juniper if it follows US GAAP versus IFRS? If there is a difference, what is the main cause of that difference?