Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,000 purchase Technoid Incorporated sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2024. The manufacturing cost of the option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. computers was $17 million. Lease Cash Effective Decrease Outstanding This noncancelable lease had the following terms: Payment Payment Interest in Balance Balance . Lease payments: $2,897,796 semiannually; first payment on January 1, 2024; remaining payments on June 30 and December 31 each year through 34, 600 June 30, 2028. $ 8,000 26 , 600 . Lease term: 5 years (10 semiannual payments). 8,000 $ 2, 660 $ 5,340 21 , 260 . No residual value; no purchase option. 8,000 2 , 126 5 , 874 15 , 386 . Economic life of equipment: 5 years. 8,000 1 , 539 6 , 461 8 , 925 . Implicit interest rate and lessee's incren lessee's incremental borrowing rate: 8% semiannually. 8,000 ?? . Fair value of the computers on January 1, 2024: $21 million. $ 2,000 $ 182 $ 1, 818 What is the outstanding balance of the lease liability in Lone Star's balance sheet on June 30, 2024? What would be the amount of interest expense recorded with payment 5? Note: Round your answer to the nearest whole dollar. Multiple Choice Multiple Choice $21,000,000 O $1.107 $15,752,593 $7:107 $16,652,584 O $893 None of these answer choices is correct. $2,000 BBB Leasing purchased a machine for $250,000 and leased it to Jack Tupp Auto Repair on January 1, 2024. On September 1, 2024, Custom Shirts Incorporated entered into a lease agreement appropriately classified as an operating lease. The lease term is Lease description: three years. The annual payments by Custom Shirts are (a) $20,000 for year 1, (b) $24,000 for year 2, and (c) $28,000 for year 3. How much total lease Quarterly rental $16, 315 at beginning of each period expense will Custom Shirts recognize for 2024? Lease term 5 years (20 quarters) No residual value; no BPO Economic life of machine 5 years Multiple Choice Implicit interest rate 128 Fair value of asset $250, 000 What is the balance in the lease payable account after the April 1, 2024, lease payment? $6,667 Multiple Choice $24.000 O $8,000 $241,185 O $20,000 $233,685 $224,38 $232,569 1.D. Clair Company recorded a right-of-use asset of $100,000 in a 10-year operating lease. Payments of $14,795 are made annually on January 1 of each year beginning January 1, 2024. The interest rate charged by the lessor was 10%. The balance in the right-of-use asset on December 31, 2024, will be: n a 10-year finance lease, Warren Company recorded a right-of-use asset of $830,000. If the interest rate charged by the lessor was 10%, what would be Note: Round your answer to the nearest whole dollar amount. the balance in the right-of-use asset after two years? Multiple Choice Multiple Choice O $672,300. $664,000 . O $100,000 . $834,150. $85,205. $1,004,300. $91,478
