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Please help with values for debit and credit above and the PV of lease payments, thank you! Exercise 21A-3 a-g Shamrock Company leases an automobile
Please help with values for debit and credit above and the PV of lease payments, thank you!
Exercise 21A-3 a-g Shamrock Company leases an automobile with a fair value of $18,013 from John Simon Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months. 2. Rental of $370 per month (at the beginning of each month). (The present value at 0.5% per month is $16,415.) 3, Shamrock guarantees a residual value of $1,600 (the present value at 0.5% per month is $1,247). Shamrock expects the probable residual value to be $1,600 at the end of the lease term. Estimated economic life of the automobile is 60 months Shamrock's incremental borrowing rate is 6% a year (0.5% a month). Simon's implicit rate is unknown 4. 5. . Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)Step by Step Solution
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