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On January 1, 2020 MEDIUMCARMAKER (MCM) entered into a lease agreement with BIGMACHINEMAKER (BMM) for 2 AIO machines (machine described in Problem 1 above). The
On January 1, 2020 MEDIUMCARMAKER (MCM) entered into a lease agreement with BIGMACHINEMAKER (BMM) for 2 AIO machines (machine described in Problem 1 above). The untitled amortization schedule for this lease for MCM is shown below: 1/1/2020 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027 287,422 287,422 287,422 287,422 287,422 287,422 287,422 287,422 153,337 139,929 125,180 108,955 91,109 71,478 49,883 26,129 134,084 147,493 162,242 178,466 196,313 215,944 237,539 261,292 1,533,373 1,399,289 1,251,796 1,089,554 911,088 714,775 498,831 261,292 Assuming this lease meets at least one of the criteria to be classified as a finance lease, determine the following amounts related to the lease: 1. Balance in the Right-of-use Asset account at the start of the lease 2. Financing Expense - Lease (Interest Expense) reported for the year-ended 12/31/2026 3. Amortization Expense-Right-of-use Asset reported for the year-ended 12/31/2021 4. Balance in the Lease Liability account on 12/31/2024 5. Balance in the Right-of-use Asset account on 12/31/2024 6. Implicit interest on the lease Assuming this lease does not meet any of the criteria for it to classified as a finance lease, determine the following amounts related to the lease: 1. Balance in the Right-of-use Asset account at the start of the lease 2. Financing Expense - Lease (Interest Expense) reported for the year-ended 12/31/2026 3. Amortization Expense - Right-of-use Asset reported for the year-ended 12/31/2021 4. Lease Expense reported for the year-ended 12/31/2024 5. Balance in the Lease Liability account on 12/31/2024 6. Balance in the Right-of-use Asset account on 12/31/2024
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