Practice Assignment Gradebook ORION Downloadable eTextbook signment CALCULATOR MESSAGE MY INSTRUCTOR || FULL SCREEN PRINTER VERSION RACK NEXT Exercise 21-13 On January 1, 2017, a machine was purchased for $854,400 by Shamrock Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to Bridgeport Inc. on January 1, 2017, at an annual rental of $207,600. Other relevant information is as follows. 1. The lease term is for 3 years. 2. Shamrock Co. incurred maintenance and other executory costs of $24,900 in 2017 related to this lease. The machine could have been sold by Shamrock Co. for $894,400 instead of leasing it. 4. Bridgeport is required to pay a rent security deposit of $34,600 and to prepay the last month's rent of $17,300. (a) How much should Shamrock Co. report as income before income tax on this lease for 2017? Income before income tax (b) What amount should Bridgeport Inc. report for rent expense for 2017 on this lease? Rent expense Click if you would like to Show Work for this question: Qen Show Work Question Attempts: 0 of 5 used |