Sierra Fishing Co. enters into a 15-year lease of a fishing boat. Lease payments are $30,000 per year payable at the

end of each year. The interest rate implicit in the lease is not readily determinable. Sierra Fishing Co's. incremental

borrowing rate is 8 percent per annum. Sierra Fishing Co. depreciates the fishing boat on a straight line basis over the

12 lease term. At lease commencement, the right-of-use asset is $286,784 and the lease liability is $256,784.

How should Sierra Fishing Co. account for the lease at the end of Year 1?

Sierra Fishing Co. enters into a 15-year lease of a fishing boat. Lease payments are $30,000 peryear payable at the end of each year. The interest rate implicit in the lease is not readily determinable. Sierra Fishing co's. incremental borrowing rate is 8 percent per annum. Sierra Fishing Co. depreciates the fishing boat on a straight line basis over the 12 lease term. At lease commencement, the right-of-use asset is $286,784 and the lease liability is $256,784, How should Sierra Fishing Co. account for the lease at the end of Year 1 ? select the Excel icon to use a template to assist with the calculation. Select and drag the correct answers from the suggestions below into the blanks and then select Submit