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Remaining Time: 1 hour, 44 minutes, 24 seconds. Question Completion Status: 1 2 4 5 6 7 QUESTION 1 25 points Save Answer mel https://www.docdroid.net/1szBGK/acc-4053-present-value-tables-pdf#page
Remaining Time: 1 hour, 44 minutes, 24 seconds. Question Completion Status: 1 2 4 5 6 7 QUESTION 1 25 points Save Answer mel https://www.docdroid.net/1szBGK/acc-4053-present-value-tables-pdf#page 3 PTL signs a lease agreement on January 1, 2017 to lease equipment to MBC. 1. The term of the non-cancelable lease is 4 years. 2. Annual payments are required at the end of the year. 3. The agreement has a bargain purchase option allowing MBC, the lessee, to buy the equipment for $25,000 at the end of the lease term. 4. The equipment has a cost and fair value of $325,000. 5. The useful economic life of the equipment is 5 years. 6. Lessor's implicit rate is 12% per annum. 7. The collectability of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. Required: a) Compute the annual payments the lessor will receive. (4 marks) b) Prepare the lease amortization schedule for the lessor, PTL, for 2017 and 2018. (3 marks) c) Prepare all necessary journal entries to record the lease for the two years of 2017 and 2018. (16 marks) d) Assuming that MBC exercises its option to purchase the equipment on December 31, 2020, record the entry showing the sales on the lessor's, i.e. PTL's books. (2 marks) text-2 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BI U S Paragraph V Arial 14px text- E x & T The V T 192 PB BA EXE E ** Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Window Save and Submit
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