POV: Lessee

Soaring Pieces Inc, creates aluminum alloy parts for commercial aircraft. In a recent transaction Soaring leased a high recision lathe machine from Rapid Revolving Corp, on January 1, 2019. The following information pertains to the leased asset and the lease agreement: The lathe machine will revert back to the lessor at end of lease term, title does not transfer to lessee at any time, and there is not a bargain purchase option. Required: Determine the amount the right-of use asset and lease liability are initially measured at from the perspective of the lessee. Prepare the journal entries on January 1,2019, December 31, 2019, and January 1, 2020 for the lessee