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The following facts pertain to a non-cancelable lease agreement between Ivanhoe Leasing Company and Metlock Company, a lessee. Commencement date Annual lease payment beginning
The following facts pertain to a non-cancelable lease agreement between Ivanhoe Leasing Company and Metlock Company, a lessee. Commencement date Annual lease payment beginning with June 1, 2020 Bargain purchase option price at end of lease term Lease term Economic life of leased equipment (no salvage value) Lessor's cost Fair value of asset at June 1, 2020 June 1, 2020 $46,962.82 $12,000 4 years 12 years $159,000 $181,999.99 Lessor's implicit rate (known to lessee) Lessee's incremental borrowing rate The collectibility of the lease payments by Ivanhoe is probable. 6 % 6 %
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