Francisco leased equipment from Julio on December 31, 2011. The lease is a 10-year lease with annual payments of $150,000 due on December 31 of each year. The present value of the lease is $1,020,000. Francisco's incremental borrowing rate is 12% for this type of lease. The implicit rate of 10% is known by the lessee. What should be the balance in Francisco lease liability at December 31, 2012?

LMN (the lessee) leased a machine from XYZ (the lessor) on January 1, 2023. Relevant information about the finance lease follows: ▪ The lease has a 5 year term, beginning January 1, 2023 and ending December 31 of the final year of the lease. ▪ The lease requires annual payments of $10,000. The first payment is made on the date the lease is signed (January 1, 2023), and subsequent payments are made on December 31 of 2023 and each December 31 after that. ■ The asset has a fair value of $43,121 and an economic useful life of 6 years. ▪ The asset will be returned to XYZ (the lessor) at the end of the lease term. ▪ The lease includes an implicit interest rate of 8% per year. At that rate, the present value of the lease payments is equal to the asset's fair value. Required: What dollar amount will ABC report as the Lease Payable balance as of December 31, 2023 (the end of the first year, after the second payment)?

A lease agreement that qualifies as a finance lease calls for annual lease payments of $20,000 over a eight-year lease term (also the asset’s useful life), with the first payment on January 1, the beginning of the lease. The interest rate is 4%. Required: Complete the amortization schedule for the first two payments. If the lessee’s fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year? What would be the interest payable?

On June 30, Year 1, a company signs a lease requiring quarterly payments each year for the next five years. Each of the 20 quarterly payments is $29,122.87, with the first lease payment beginning September 30. The company’s normal borrowing rate is 6%. Use PVA of $1. (Use appropriate factor(s) from the tables provided. Do not round interest rate factors.)Required:  What is the PV of lease payment.  Record the lease on June 30, year 1.

A finance lease agreement calls for quarterly lease payments of $5,376 over a 10-year lease term, with the firstpayment on July 1, the beginning of the lease. The annual interest rate is 8%. Both the present value of the leasepayments and the cost of the asset to the lessor are $150,000. What would be the amount of interest expense thelessee would record in conjunction with the second quarterly payment on October 1? What would be the amountof interest revenue the lessor would record in conjunction with the second quarterly payment on October 1?

A lease agreement calls for quarterly lease payments of $5,376 over a 10-year lease term, with the first payment at July 1, the lease’s inception. The interest rate is 8%. Both the fair value and the cost of the asset to the lessor are $150,000. What would be the amount of interest expense the lessee would record in conjunction with the second quarterly payment at October 1? What would be the amount of interest revenue the lessor would record in conjunction with the second quarterly payment at October 1?

A lease agreement that qualifies as a finance lease calls for annual lease payments of $25,000 over a six-year lease term (also the asset's useful life), with the first payment on January 1, the beginning of the lease. The interest rate is 5%. Required: Complete the amortization schedule for the first two payments. If the lessee's fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year? What would be the interest payable? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

On January 1, 2021, Wise Corporation leased equipment to Slim Company. The lease term is eight years. The first payment of $675,000 was made on January 1, 2021. The equipment cost Wise Corporation $3,600,000. The present value of the lease payments is $3,961,183. The lease is appropriately classified as a sales-type lease. suming the interest rate for this lease is 10%, how much interest revenue will Wise record in 2022 on this lease?   A. $261,000. B. $293,980. C. $325,350. D. $328,615.

A lease agreement that qualifies as a finance lease calls for annual lease payments of $26,269 over a six-year lease term (also the asset’s useful life), with the first payment on January 1, the beginning of the lease. The interest rate is 5%. Required: Complete the amortization schedule for the first two payments. If the lessee’s fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its balance sheet at the end of the first year? What would be the interest payable?

On January 1, 2018, This Co. leased an asset with fair value of P800,000 from Joyce Co. for a lease term of 6 years. The lease specifies equal annual payments beginning on January 1, 2018. The lessee guarantees a P100,000 residual value of the asset at the end of the lease term. The rate implicit on the lease is 9%. How much is the annual lease payment?