On September 1, 2023, Ivanhoe Corporation, which uses ASPE, signed a 6-year, non-cancellable lease for a piece of equipment. The terms of the lease called for Ivanhoe to make annual payments of $14,280 at the beginning of each lease year, starting September 1 , 2023. The equipment has an estimated useful life of 8 years and a $6,000 unguaranteed residual value and a fair value on September 1, 2023, of $91,000. The equipment reverts back to the lessor at the end of the lease term. Ivanhoe uses the straight-line method of depreciation for all of its plant assets, has a calendar year end, prepares adjusting journal entries at the end of the fiscal year, and does not use reversing entries. Ivanhoe's incremental borrowing rate is 12%, and the lessor's implicit rate is unknown. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. (a) Calculate the PV of the future minimum lease payments using any of the following methods: (1) factor tables, (2) a financial calculator, or (3) Excel functions. (Round factor value to 5 decimal places, eg. 1.25124 and final answer to 0 decimal places, eg. 5,275.) Present value of the minimum lease payments $ eTextbook and Media List of Accounts (c) Prepare all necessary journal entries for Ivanhoe for this lease, including any year-end adjusting entries through December 31 , 2024. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record joumal entries in the order presented in the problem. Round answers to 0 decimal places, eg. 5,275. On September 1, 2023, Ivanhoe Corporation, which uses ASPE, signed a 6-year, non-cancellable lease for a piece of equipment. The terms of the lease called for Ivanhoe to make annual payments of $14,280 at the beginning of each lease year, starting September 1 , 2023. The equipment has an estimated useful life of 8 years and a $6,000 unguaranteed residual value and a fair value on September 1, 2023, of $91,000. The equipment reverts back to the lessor at the end of the lease term. Ivanhoe uses the straight-line method of depreciation for all of its plant assets, has a calendar year end, prepares adjusting journal entries at the end of the fiscal year, and does not use reversing entries. Ivanhoe's incremental borrowing rate is 12%, and the lessor's implicit rate is unknown. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. (a) Calculate the PV of the future minimum lease payments using any of the following methods: (1) factor tables, (2) a financial calculator, or (3) Excel functions. (Round factor value to 5 decimal places, eg. 1.25124 and final answer to 0 decimal places, eg. 5,275.) Present value of the minimum lease payments $ eTextbook and Media List of Accounts (c) Prepare all necessary journal entries for Ivanhoe for this lease, including any year-end adjusting entries through December 31 , 2024. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record joumal entries in the order presented in the problem. Round answers to 0 decimal places, eg. 5,275
