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Oxford Leasing and Manufacturing Company uses leases as a means of financing sales of its equipment. Oxford leased a machine to Warwick Construction for $15,000
Oxford Leasing and Manufacturing Company uses leases as a means of financing sales of its equipment. Oxford leased a machine to Warwick Construction for $15,000 per year, payable in advance, for a 10 year period. The cost of the machine to Oxford was $86,000. The fair value at the date of the lease was $1,00,000. Assume a residual value of $0 at the end of the lease. A. What type of lease is this and give the entry to record the lease in Oxford's Books. B. How much profit will Oxford recognize initially on the lease, excluding interest revenue? C. How much interest revenue would be recognized in the first year
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