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Question: UCS leased equipment from PLS on January 1, 2024. PLS paid $625,483 for the equipment. The equipment's fair value is also $625,483. The

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Question: UCS leased equipment from PLS on January 1, 2024. PLS paid $625,483 for the equipment. The equipment's fair value is also $625,483. The lease term is 3 years, with semiannual periodic lease payments of $120,000 starting with January 1, 2024. Economic life of assets is 3 years. Assume 12 % annual interest rate. Required: (1) In the "Lease classification" tab, answer whether this lease qualifies as operating or financing lease in the books of UCS (2) In the "Amortization Schedule" Tab, first calculate present value of periodic lease payments and then prepare an amortization schedule that UCS will use. Use formulae in all the yellow shaded areas (3) In the "Analysis" tab, prepare a graph (line chart) showing the outstanding balance and periodic payments over the three year period, starting with Jaunary 1, 2024. (Hint: First fill in outstanding balance and periodic payment information from "Amortization Schedule" tab, using formulae.)

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