Problem 5-10 (LO 4) 100%, cost, operating lease. Sym Corporation, a wholly owned subsidiary of Paratec Corporation, leased equipment from its parent company on August 1, 2016. The terms of the agreement clearly do not require the lease to be accounted for as a capi- tal lease. Both entities are accounting for the lease as an operating lease. The lease payment is $12,000 per year, paid in advance each August 1 Paratec purchased its investment in Sym on December 31, 2011, when Sym had a retained earnings balance of $150,000. Paratec is accounting for its investment in Sym under the cost method. Included in the original purchase price was a $50,000 premium attributable to Sym's history of exceptional earnings. trial balances of Paratec and its subsidiary are presented below. Paratec Sym Corporation Corporation Cash Accounts Receivable (net). Inventory... Prepaid Rent on Equipment.. Investment in Bonds Investment in Sym Corporation Land Plant and Equipment Accumulated Depreciation-Plant and Equipment Equipment Under Operating Lease. .. Accumulated Depreciation-Assets Under Operating Lease Accounts Payable 190,000 738,350 500,000 40,000 142,000 75,000 7,000 65,000 250,000 400,000 250,000 85,000 295,000 1,950,000 (250,000) (60,000) 120,000 (36,000) (385,000 (52,000) (7,000) (2,000,000 (200,000) (1,076,350) (310,000) Retained Earnings, January 1, 2018