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The following facts pertain to a noncancelable lease agreement between Carla Leasing Company and Sarasota Company, a lessee Inception date: Annual lease payment due at
The following facts pertain to a noncancelable lease agreement between Carla Leasing Company and Sarasota Company, a lessee Inception date: Annual lease payment due at the beginning of May 1, 2017 each year, beginning with May 1, 2017 Bargain-purchase option price at end of lease term Lease term $19,199.45 $4,000 5 years 10 years Economic life of leased equipment Lessor's cost $67,000 $84,000 Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate 9% 9% 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. The expected residual value of the equipment at the end of 5 (10) years is $12,000 ($0) Prepare a lease amortization schedule for Sarasota Company for the 5-year lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25126 and Round answers to 2 decimal places, e.g. 15.25.) SARASOTA COMPANY (Lessee) Lease Amortization Schedule Annual Lease Payment Plus BPO Interest on Liability Reduction of Lease Liability Date Lease Liability 5/1/20 5/1/21 4/30/22 Attempts: 0 of 3 used
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