he following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Ivanhoe Company, a lessee. Commencement date   January 1,   Annual lease payment due at the beginning of    each year, beginning with January 1,   $99,118   Residual value of equipment at end of lease term,    guaranteed by the lessee   $53,000   Expected residual value of equipment at end of lease term   $48,000   Lease term   6 years Economic life of leased equipment   6 years Fair value of asset at January 1,   $554,000   Lessor’s implicit rate   6 % Lessee’s incremental borrowing rate   6 % The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Click here to view factor tables.             (a)     Your answer is partially correct.  Try again.     Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places e.g. 5,275.) IVANHOE COMPANY (Lessee) Lease Amortization Schedule Date   Annual Lease Payment Plus GRV   Interest on Liability   Reduction of Lease Liability   Lease Liability 1/1/20   $enter a dollar amount rounded to 0 decimal places     $enter a dollar amount rounded to 0 decimal places     $enter a dollar amount rounded to 0 decimal places     $enter a dollar amount rounded to 0 decimal places   1/1/20   enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places   1/1/21   enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places   1/1/22   enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places   1/1/23   enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places   1/1/24   enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places   1/1/25   enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places     enter a dollar amount rounded to 0 decimal places   12/31/2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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he following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Ivanhoe Company, a lessee.

Commencement date   January 1,  
Annual lease payment due at the beginning of
   each year, beginning with January 1,
  $99,118  
Residual value of equipment at end of lease term,
   guaranteed by the lessee
  $53,000  
Expected residual value of equipment at end of lease term   $48,000  
Lease term   6 years
Economic life of leased equipment   6 years
Fair value of asset at January 1,   $554,000  
Lessor’s implicit rate   6 %
Lessee’s incremental borrowing rate   6 %

The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment.

Click here to view factor tables.
 
 
 
 
 
 

(a)

 
  Your answer is partially correct.  Try again.
   
Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 0 decimal places e.g. 5,275.)

IVANHOE COMPANY (Lessee)
Lease Amortization Schedule
Date
 
Annual Lease
Payment Plus GRV
 
Interest on
Liability
 
Reduction of Lease
Liability
 
Lease Liability
1/1/20  
$enter a dollar amount rounded to 0 decimal places
 
 
$enter a dollar amount rounded to 0 decimal places
 
 
$enter a dollar amount rounded to 0 decimal places
 
 
$enter a dollar amount rounded to 0 decimal places
 
1/1/20  
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
1/1/21  
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
1/1/22  
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
1/1/23  
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
1/1/24  
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
1/1/25  
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
 
enter a dollar amount rounded to 0 decimal places
 
12/31/2
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