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On January 1, 2020 a machine was purchased for 403,000 by Metlock Leasing co. The machine is expected to have 10 year life with no
On January 1, 2020 a machine was purchased for 403,000 by Metlock Leasing co. The machine is expected to have 10 year life with no salvage value. It is to be depreciated on a straight line basis. The machine was leased to Ivanhoe Inc. for 3 years on January 1, 2020 with annual rent payments 68,440 due at the beginning of each year, starting January 1, 2020. The machine is expected to have residual value at the end of the lease term of $264,000, though this amount is unguaranteed. Prepare the 2020 journal entries for the lessor.
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