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Please show work for the first couple lines for each if possible. blicies attempt History nt Attempt in Progress amrock Corporation leases a building to
Please show work for the first couple lines for each if possible.
blicies attempt History nt Attempt in Progress amrock Corporation leases a building to Pharoah, Inc. on January 1, 2020. The following facts pertain to the lease agreement. 1. The lease term is 10 years with equal annual rental payments of $3,532 at the end of each year. 2. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature. 3. The building has a fair value of $34,700, a book value to Shamrock of $22,600, and a useful life of 15 years. 4. At the end of the lease term, Shamrock and Pharoah expect the residual value of the building to be $12, 100, and this amount is guaranteed by Money, Inc., a third party. 5. Shamrock wants to earn a 5% return on the lease, and collectibility of the payments is probable. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Homework Question 5 of 5 12/31/24 12/31/25 12/31/26 12/31/27 12/31/28 12/31/29 12/31/29 $ $ $ *Rounded $1 Save for Later Atte - C D Jestion 5 of 5Step by Step Solution
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