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The following facts pertain to a noncancelable lease agreement between Mooney Leasing Company and Rode Company, a lessee. Inception date: Annual lease payment due at
The following facts pertain to a noncancelable lease agreement between Mooney Leasing Company and Rode Company, a lessee. Inception date: Annual lease payment due at the beginning of May 1, 2014 $19,687.57 $3,550.00 each year, beginning with May 1, 2014 Bargain-purchase option price at end of lease term Lease termm Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2014 Lessor's implicit rate Lessee's incremental borrowing rate 5 years 10 years $66,500.00 $81,500.00 12% 12% The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs
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