Stats 22 23 CALCIO CRACK Questions Kingbird Company manufactures a check in with an estimated economic life of 12 years and leases it to Oriele Alines for a period of 10 years. The normal saling rice of the mentis $294,530, and its granted residual value at the end of the lease term is estimated to be 521,500. Oncle will pay anal payments of $40,000 at the beginning of each year, Kingbird incurred costs of $168,000 in manufacturing the ment and 54,400 in sales commissions in doing the leasingbird has determined that the collectibility of the lease payment is probable and that the implicit interest rate is 9. Orole Alines has incremental borrowing rate of 9 Click here to view facer tables Discuss the nature of this lease in relation to the less This is a finance fase Compute the amount of the initial lease ability Cound present we factors to decimal places 1.25124 and the final answer to decimal places.g. 5,971) The amount of the initial lease ability SHOW LIST OF ACCOUNTS Prepare a 10-year lease amortization schedule. (Round answers to o decimal places e.g. 58,970.) ORIOLE AIRLINES (Lessee) Lease Amortization Schedule (Annuity due basis and URV) Beginning Interest on Reduction of Lease of Year Annual Lease Payment Lease Liability Liability Initial PV Lease Liability 294530 1 43634 2 43634 3 43634 4 43634 5 6 7 8 9 10 SHOW LIST OF ACCOUNTS Account Titles and Explanation Debit Credit Right-of-Use Asset 294530 294530 Lease Liability (To record the lease.) Lease Liability 43634 Cash 43634 (To record the first rental payment.) Interest Expense Lease Liability (To record accrual of annual interest on lease obligation.) Amortization Expense Right-of-Use Asset (To record amortization expense for first year.) SHOW LIST OF ACCOUNTS