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PROBLEM #3 On 12/31/16, Hall Inc entered into a lease agreement with Oates Co. Hall leased the 9 year Oates for 9 years. The estimated
PROBLEM #3 On 12/31/16, Hall Inc entered into a lease agreement with Oates Co. Hall leased the 9 year Oates for 9 years. The estimated useful life of the machine is 9 years. a machine from annual payments of $150,000, to begin on 12/31/16. The borrowing rate is present value factor of an annuity due is 6.33 at 10%. lease term, ownership of the machine will transfer back to Oates. The lease At the end of the 9 year agreement calls for 10%. Rounded a. Prepare a lease amortization table for 12/31/16 & 12/3/17 b. Prepare journal entries for both Hall & Oates for 12/31/16& 12/31/17
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