Question
To raise operating funds, North American Courier Corporation sold its building on January 1, 2021, to an insurance company for $432,000 and immediately leased the
To raise operating funds, North American Courier Corporation sold its building on January 1, 2021, to an insurance company for $432,000 and immediately leased the building back. The lease is for a 10-year period ending December 31, 2030, at which time ownership of the building will revert to North American Courier. The building has a carrying amount of $460,000 (original cost $1,320,000). The lease requires North American to make payments of $70,306 to the insurance company each December 31. The building had a total original useful life of 30 years with no residual value and is being depreciated on a straight-line basis. The lease has an implicit rate of 10%
please give me the Dec. 31 Depreciation expense and Accumulated depreciation. TY
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