X h2W x Maillos XI S /courses/41267/assignments/14400959 O I Becommende store + - X Your answer is incorrect. Sheridan Company leases a building to Skysong, Inc. on January 1, 2020. The following facts pertain to the lease agreement. 1. The lease term is 4 years, with equal annual rental payments of $5.914 at the beginning of each year. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature 3. The building has a fair value of $24.000, a book value to Sheridan of $17,000, and a useful life of 5 years 4. At the end of the lease term, Sheridan and Skysong expect there to be an unguaranteed residual value of $4.250. 5. Sheridan wants to earn a return of 9% on the lease, and collectibility of the payments is probable. This rate is known by Skysong Assume that Skysong was unaware of the implicit rate used in the lease by Sheridan and has an incremental borrowing rate of 10% Click here to view factor tables. How would Sheridan (lessor) and Skysong (lessee classify this lease? finance lease Sheridan would classify the lease as a Skysong would classify the lease as a sales-type lease. How would Sheridan initially measure the lease receivable, and how would Skysong initially measure the lease liability and richt-of-use asset? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places, es 52751 po x W X Mobile XIX courses/41267/assignments/4400959 e X X e X + How would Sheridan (lessor) and Skysong lessee classify this lease? Sheridan would classify the lease as a Skysong would classify the lease as a france sales type lease lease How would Sheridan initially measure the lease receivable, and how would Skysong initially measure the lease liability and right of use asset? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places, es 5,275) Sheridan Lease receivable 22268 Present value of lease pay $ 19257 Skysong Lease Liability/Right-of-Use Assets e Textbook and Media Save for later Attempts: 1 of 3 used Submit Answer X h2W x Maillos XI S /courses/41267/assignments/14400959 O I Becommende store + - X Your answer is incorrect. Sheridan Company leases a building to Skysong, Inc. on January 1, 2020. The following facts pertain to the lease agreement. 1. The lease term is 4 years, with equal annual rental payments of $5.914 at the beginning of each year. Ownership does not transfer at the end of the lease term, there is no bargain purchase option, and the asset is not of a specialized nature 3. The building has a fair value of $24.000, a book value to Sheridan of $17,000, and a useful life of 5 years 4. At the end of the lease term, Sheridan and Skysong expect there to be an unguaranteed residual value of $4.250. 5. Sheridan wants to earn a return of 9% on the lease, and collectibility of the payments is probable. This rate is known by Skysong Assume that Skysong was unaware of the implicit rate used in the lease by Sheridan and has an incremental borrowing rate of 10% Click here to view factor tables. How would Sheridan (lessor) and Skysong (lessee classify this lease? finance lease Sheridan would classify the lease as a Skysong would classify the lease as a sales-type lease. How would Sheridan initially measure the lease receivable, and how would Skysong initially measure the lease liability and richt-of-use asset? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places, es 52751 po x W X Mobile XIX courses/41267/assignments/4400959 e X X e X + How would Sheridan (lessor) and Skysong lessee classify this lease? Sheridan would classify the lease as a Skysong would classify the lease as a france sales type lease lease How would Sheridan initially measure the lease receivable, and how would Skysong initially measure the lease liability and right of use asset? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to decimal places, es 5,275) Sheridan Lease receivable 22268 Present value of lease pay $ 19257 Skysong Lease Liability/Right-of-Use Assets e Textbook and Media Save for later Attempts: 1 of 3 used Submit
