Question Completion Status: L QUESTION 7 Please use the following information for Q7-Q12. Bentley Inc. (the lessor) leases an asset to Haley Corp. (the lessee) for four years. Data relating to this lease are provided below. Assume this lease is a capital lease in all parts below. Answer the following questions for Haley Corp. (the Lessee). 1. Lease is signed on 1/1/1 2. Lease term: 4 years 3. Remaining useful life of leased asset as of 1/1/1: 6 years 4. Fair market value on 1/1/1: $60,000 5. Expected fair market value of leased asset on 12/31/4: $1,000 6. Estimated Net Salvage Value on 12/31/5: $6,000 7. Incremental borrowing rate: 10% 8. Actual fair market value of leased asset on 12/31/4: $8,000 9. Payments of $20,000 are to be made at the end of each year. Executory costs represent $2,000 of the $20,000 payment. 10. The lease contains a GRV (guaranteed residual value) on 12/31/4 of $4,000. Strong form capital lease under #1 Strong form capital lease under #2 Weak form capital lease under #3 Weak form capital lease under #4 Operating lease QUESTIONS What is the lease obligation balance as of 1/1/YR1? Answer pmt TEV type Save All Answers Click Save and Submit to save and submit. Click Save All Answers to save all answers, MacBook Pro Remaining Time: 1 hour, 36 minutes, 41 seconds. Question Completion Status: QUESTION 8 6. What is the lease obligation balance as of 1/1/9R1? pmt FV type Answer % QUESTION 9 Prepare the "Make the asset go away" table and calculate depreciation expense per year. GRV Expected FMV Expected Check Expected Check Avoided Actual FMV Actual Check Depreciation Expenselyr= QUESTION 10 Save All Answers Close Click Save and Submit to save and submit. Click Save All Answers to save all answers. Remaining Time: 1 hour, 36 minutes, 23 seconds. Question Completion Status: QUESTION 10 Prepare the "Make the liability go away" table below. Date Cash Pmt Interest Exp 1/1/YR1 Change in Liab Liab Bal 12/31/YR1 12/31/YR2 12/31/YR3 12/31/YR4 QUESTION 11 Prepare journal entries for 1/1/YR1 and 12/31/YR1. For 12/31/YR1 J/E, ignore executory costs and depreciation. Copy and paste account names from the list below. Accumulated Depreciation Cash Depreciation Expense Gain Interest Expense Interest Payable Interest Receivable Interest Revenue Leased Asset Lease Obligation QUESTION 11 Prepare journal entries for 1/1/YR1 and 12/31/YR1. For 12/31/YR1 J/E, ignore executory costs and depreciation. Copy and paste account names from the list below.. Accumulated Depreciation Cash Depreciation Expense Gain Interest Expense Interest Payable Interest Receivable Interest Revenue Leased Asset Lease Obligation Lease Receivable Loss 1/1/YR1 12/31/YR1 Click Save and Submit to save and submit. Click Save All Answers to save all answers. QUESTION 12 Prepare journal entries for 12/31/YR4 (lease termination). Copy and paste account names from the list below. Accumulated Depreciation Cash Depreciation Expense Gain Interest Expense Interest Payable Interest Receivable Interest Revenue Leased Asset Lease Obligation Lease Receivable Loss QUESTION 13 to save all answers. Question Completion Status: L QUESTION 7 Please use the following information for Q7-Q12. Bentley Inc. (the lessor) leases an asset to Haley Corp. (the lessee) for four years. Data relating to this lease are provided below. Assume this lease is a capital lease in all parts below. Answer the following questions for Haley Corp. (the Lessee). 1. Lease is signed on 1/1/1 2. Lease term: 4 years 3. Remaining useful life of leased asset as of 1/1/1: 6 years 4. Fair market value on 1/1/1: $60,000 5. Expected fair market value of leased asset on 12/31/4: $1,000 6. Estimated Net Salvage Value on 12/31/5: $6,000 7. Incremental borrowing rate: 10% 8. Actual fair market value of leased asset on 12/31/4: $8,000 9. Payments of $20,000 are to be made at the end of each year. Executory costs represent $2,000 of the $20,000 payment. 10. The lease contains a GRV (guaranteed residual value) on 12/31/4 of $4,000. Strong form capital lease under #1 Strong form capital lease under #2 Weak form capital lease under #3 Weak form capital lease under #4 Operating lease QUESTIONS What is the lease obligation balance as of 1/1/YR1? Answer pmt TEV type Save All Answers Click Save and Submit to save and submit. Click Save All Answers to save all answers, MacBook Pro Remaining Time: 1 hour, 36 minutes, 41 seconds. Question Completion Status: QUESTION 8 6. What is the lease obligation balance as of 1/1/9R1? pmt FV type Answer % QUESTION 9 Prepare the "Make the asset go away" table and calculate depreciation expense per year. GRV Expected FMV Expected Check Expected Check Avoided Actual FMV Actual Check Depreciation Expenselyr= QUESTION 10 Save All Answers Close Click Save and Submit to save and submit. Click Save All Answers to save all answers. Remaining Time: 1 hour, 36 minutes, 23 seconds. Question Completion Status: QUESTION 10 Prepare the "Make the liability go away" table below. Date Cash Pmt Interest Exp 1/1/YR1 Change in Liab Liab Bal 12/31/YR1 12/31/YR2 12/31/YR3 12/31/YR4 QUESTION 11 Prepare journal entries for 1/1/YR1 and 12/31/YR1. For 12/31/YR1 J/E, ignore executory costs and depreciation. Copy and paste account names from the list below. Accumulated Depreciation Cash Depreciation Expense Gain Interest Expense Interest Payable Interest Receivable Interest Revenue Leased Asset Lease Obligation QUESTION 11 Prepare journal entries for 1/1/YR1 and 12/31/YR1. For 12/31/YR1 J/E, ignore executory costs and depreciation. Copy and paste account names from the list below.. Accumulated Depreciation Cash Depreciation Expense Gain Interest Expense Interest Payable Interest Receivable Interest Revenue Leased Asset Lease Obligation Lease Receivable Loss 1/1/YR1 12/31/YR1 Click Save and Submit to save and submit. Click Save All Answers to save all answers. QUESTION 12 Prepare journal entries for 12/31/YR4 (lease termination). Copy and paste account names from the list below. Accumulated Depreciation Cash Depreciation Expense Gain Interest Expense Interest Payable Interest Receivable Interest Revenue Leased Asset Lease Obligation Lease Receivable Loss QUESTION 13 to save all answers