Use the following information to solve MCQ5 to MCQ9 ABC Corporation (lessee) enters into an agreement with Yates Rentals Co. (lessor) on January 1, 2018, for the purpose of leasing a machine to be used in its manufacturing operations. The following data pertain to the agreement: (a) The term of the non-cancelable lease is 5 years with annual payments due on January 1st of each year. (b) The fair value and the cost of the machine on January 1, 2018, is $1,500,000. The machine has an economic life of 6 years, with an unguaranteed residual value of $100,000. The machine reverts to the lessor upon the termination of the lease. (c) depreciation for all machinery it owns on a straight-line basis in both companies. (d) Yates Rentals Co's implicit rate is 8%. (e) Yates finds out that the collectibility of future lease payments is probable. (roundup answers to nearest 1$) The Lessor (Yates) compute an annual lease payment of ............ Select one: a. $332,073 b. $320,000 c. $300,000 d. $280,000 The lessor (Yates) record interest revenue for the year 2020 of . Select one: a. $31,457 b. $53,725 c. $74,343 d. $93,434 The balance of lease receivable in Yates record at the end of 2021 will be ..... Select one: a. $393,210 b. $929,288 c. $1,167,927 d. $671,558 when signing the lease on Jan 1st, 2018, the lessor (Yates) records a journal entry that includes ...... Select one: a. Debit to cost of goods sold of $1,413,942 b. Debit to Lease receivable of $1,413,942 c. Debit to Lease receivable of $1,413,942 d. Credit to sales revenue of $1,500,000 At the end of 2018, the Non-current lease receivable that is reported in the balance is .... BER Select one: a. $238,639 b. $332,073 C. $1,167,927 d. $835,854