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On January 1 of Year 1 , Ashe Company entered into a five - year equipment lease ( with no renewal options ) requiring payments
On January of Year Ashe Company entered into a fiveyear equipment lease with no renewal options requiring payments of $ with the first payment due immediately. The lessor's implicit interest rate known to Ashe, is Ownership of the equipment remains with the lessor at expiration of the lease. There is no option to purchase the property at the end of the lease term and the equipment is expected to have no residual value. The equipment has an estimated economic life of five years.
Answer the following questions from the lessor's perspective, assuming that leased equipment was carried in the lessor's financial records at $
Required
a Calculate the value of the lease receivable at the commencement of the lease.
Note: Round your answer to the nearest whole dollar.
Lease Receivable Schedule
Finacial Statements
b Prepare a schedule of the lease receivable for the lessor for the lease term.
Note: Round each amount in the schedule to the nearest whole dollar. Use the rounded amount for later calculations in the schedule.
tableDatetableLeasePaymenttableLeaseRecelvableJan Year Jan Year $$Jan Year $$Jan Year $$Jan Year $$$Jan Year $$$
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