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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

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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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