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Pls help explain how to use excel formulas to answer this. At January 1 , 2 0 2 4 , Widget World Corporation leased manufacturing
Pls help explain how to use excel formulas to answer this. At January Widget World Corporation leased manufacturing equipment from Clinton Corporation under a year lease
agreement. The lease agreement specifies annual payments of $ beginning January the beginning of the lease, and on
each December thereafter through The equipment was acquired recently by Clinton at a cost of $its fair value and
was expected to have a useful life of years with no salvage value at the end of its life. Because the lease term is only years, the
asset does have an expected residual value at the end of the lease term of $ Clinton seeks a return on its lease
investments. By this arrangement, the lease is deemed to be a finance lease.
Prepare a partial amortization schedule for the first year of the lease.
Record the first lease payment on January
Record the amortization of the rightofuse asset on December
Indicate the amounts related to the lease reported on the yearend balance sheets and income statements.At January Widget World Corporation leased manufacturing equipment from Clinton Corporation under a year lease agreement. The lease agreement specifies annual payments of $ beginning January the beginning of the lease, and on each December thereafter through The equipment was acquired recently by Clinton at a cost of $its fair value and was expected to have a useful life of years with no salvage value at the end of its life. Because the lease term is only years, the asset does have an expected residual value at the end of the lease term of $ Clinton seeks a return on its lease investments. By this arrangement, the lease is deemed to be a finance lease.
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