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Please help me with this :) Exercise 21-8 The following facts pertain to a noncancelable lease agreement between Sunland Leasing Company and Coronado Company, a
Please help me with this :)
Exercise 21-8 The following facts pertain to a noncancelable lease agreement between Sunland Leasing Company and Coronado Company, a lessee. Inception date: May 1, 2017 Annual lease payment due at the beginning of $23,007.91 each year, beginning with May 1, 2017 $4,400 Bargain-purchase option price at end of lease term Lease term 5 years Economic life of leased equipment 10 years Lessor's cost $68,000 Fair value of asset at May 1, 2017 $97,000 Lessor's implicit rate 11 Lessee's incremental borrowing rate 11% The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs. Click here to view factor tables Prepare a lease amortization schedule for Coronado Company for the 5-year lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25125 and Round answers to 2 decimal places, e.g. 15.25.)Step by Step Solution
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