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Please show work if possible Current Attempt in Progress Shamrock Corporation leases a building to Pharoah, Inc. on January 1, 2020. The following facts pertain
Please show work if possible
Current Attempt in Progress Shamrock 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) 0.5/2 Assume the present value of lease payments and third-party guarantee is $34,700 and the rate of return to amortize the net lease receivable to zero is 13.12%. Prepare the amortization sche Shamrock would use to amortize the net lease receivable to zero. (Round answers to 0 decimal places, e.g. 5,275.) SHAMROCK CORPORATION (Lessor) Lease Amortization Schedule Sales-Type Lease Annual Lease Payment Date Interest on Lease Receivable Recovery of Lease Receivable Lease Receivable 1/1/20 $ $ $ $ 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 o . Type here to search J. Rain coming Tee 12.05 4/13/2 T2/31/22 12/31/23 12/31/24 12/31/25 12/31/26 12/31/27 12/31/28 12/31/29 12/31/30 TA $ $ ta $Step by Step Solution
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