Reporting a Sales-Type LeaseLessor

On January 1, 2020, the first day of its accounting year, Lessor Inc., leased certain property at an annual payment of $12,000 receivable at the beginning of each year for 5 years. The first payment was received immediately. The leased property, which is new, has an estimated useful life of 8 years and an estimated residual value of $9,000 (expected to be received by lessor but not guaranteed by the lessee). Lessors implicit rate is 6%. Lessor had no other costs associated with this lease and properly classified the lease as a sales-type lease. The leased equipment was carried on Lessor Inc.s books at $39,000.

a. Calculate the value of the lease receivable at the commencement of the lease Note: Round answer to the nearest dollar. Note: Do not use a negative sign with your answer. Lease receivable $ b. What amounts would be presented in the balance sheet as of December 31, 2020, related to this lease? Note: Round amounts to the nearest whole dollar. Dec. 31, 2020 Balance Sheet Assets Current Assets Noncurrent Assets c. What amounts would be presented in the income statement for the year ended December 31, 2020, related to this lease? Note: Round amounts to the nearest whole dollar. 2020 Income Statement Revenue Interest revenue Expenses a. Calculate the value of the lease receivable at the commencement of the lease Note: Round answer to the nearest dollar. Note: Do not use a negative sign with your answer. Lease receivable $ b. What amounts would be presented in the balance sheet as of December 31, 2020, related to this lease? Note: Round amounts to the nearest whole dollar. Dec. 31, 2020 Balance Sheet Assets Current Assets Noncurrent Assets c. What amounts would be presented in the income statement for the year ended December 31, 2020, related to this lease? Note: Round amounts to the nearest whole dollar. 2020 Income Statement Revenue Interest revenue Expenses