Question
Please help on jan 1 20z1 lesser company leased a piece of equipment to lessee company information regarding the non cancelable lease agreeement as follows
Please help
on jan 1 20z1 lesser company leased a piece of equipment to lessee company information regarding the non cancelable lease agreeement as follows
lease term is equal to 6 years
estimated economic life is 6 years
lessee's incremental rate is 11 percent
Interest rate implicit in the lease is 10 percent not known by lessee
rent payment of 28949 are due jan 1
cost of asset is 130000
fmv at inception is 148000
residual value is 16500 not guaranteed
assume that the lease qualifies for sales type lease treatment for lessor and finance for lessee prepare journal entries and t accounts
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