Huskies-perfect corporation leases equipment from Falls Company January 1, 2020. The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers 3 years of the equipments 8-year useful life, and the present value of the lease payments is less than 90% of the fair value of the asset leased. Assumed the annual lease payment is $35,000 at the beginning of each year, and Kingston's incremental borrowing rate is 6%, which is the same as the lessor's implicit rate. Use the information for huskiesperfect corporation as shown above, prepare all the necessary journal entries for falls company (the lessor) for 2020, assuming the equipment is carried at a cost of $200,000
Huskies-perfect corporation leases equipment from Falls Company January 1, 2020. The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers 3 years of the equipments 8-year useful life, and the present value of the lease payments is less than 90% of the fair value of the asset leased. Assumed the annual lease payment is $35,000 at the beginning of each year, and Kingston's incremental borrowing rate is 6%, which is the same as the lessor's implicit rate.
Use the information for huskiesperfect corporation as shown above, prepare all the necessary
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