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Please help, this previous person wasn't correct. Thank you! Ruth Leasing Company signs an agreeiment on January 1, 2025, to lease equipment to Splish Brothers
Please help, this previous person wasn't correct. Thank you!
Ruth Leasing Company signs an agreeiment on January 1, 2025, to lease equipment to Splish Brothers Company. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economiclife of 5 years. 2. The fair value of the asset at January 1,2025 , is $88,000 3. The asset will revert to the lessor at the end of the lesse term, at which time the asset is expected to have a residual value of 57,000 , none of which is suarantced. 4. The agresment requires equal annual rental pryments of $29,334,88 to the lessor, beginning on January 1,2025 . 5. The lessec's incremental borrowing rats is 5%. The lessor's implicitrate is 4% and is unknown to the lescke. 6. Splish Brothers uses the strright-line depreciztion method for al equioment. Cilickheretoviswifector tabses. Your answer is partially correct. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 2 decimal places, eg. 5,275.151Step by Step Solution
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