make blossom company journal entries: Crane Company leases a building to Blossom, Inc. on January 1, 2025. The following facts pertain to the lease agreement. Th lease term is 4 years, with equal annual rental payments of S8, 278 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. The building has a fair value of $36,000, a book value to Crane of $29,000, and a useful life of 5 years. At the end of the lease term, Crane and Blossom expect there to be an unguaranteed residual value of $6,295. Crane wants to earn a return of 5% on the lease, and collectibility of the payments is probable. This rate is known by Blossom. Crane Company leases a building to Blossom, Inc. on January 1, 2025. The following facts pertain to the lease agreement. 1. The lease term is 4 years, with equal annual rental payments of $8,278 at the beginning of each year. 2 3. 4. 5. 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. The building has a fair value of $36,000, a book value to Crane of $29,000, and a useful life of 5 years. At the end of the lease term, Crane and Blossom expect there to be an unguaranteed residual value of $6,295. Crane wants to earn a return of 5% on the lease, and collectibility of the payments is probable. This rate is known by Blossom.
make blossom company journal entries: Crane Company leases a building to Blossom, Inc. on January 1, 2025. The following facts pertain to the lease agreement. Th lease term is 4 years, with equal annual rental payments of S8, 278 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. The building has a fair value of $36,000, a book value to Crane of $29,000, and a useful life of 5 years. At the end of the lease term, Crane and Blossom expect there to be an unguaranteed residual value of $6,295. Crane wants to earn a return of 5% on the lease, and collectibility of the payments is probable. This rate is known by Blossom. Crane Company leases a building to Blossom, Inc. on January 1, 2025. The following facts pertain to the lease agreement. 1. The lease term is 4 years, with equal annual rental payments of $8,278 at the beginning of each year. 2 3. 4. 5. 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. The building has a fair value of $36,000, a book value to Crane of $29,000, and a useful life of 5 years. At the end of the lease term, Crane and Blossom expect there to be an unguaranteed residual value of $6,295. Crane wants to earn a return of 5% on the lease, and collectibility of the payments is probable. This rate is known by Blossom.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 1E: Determining Type of Lease and Subsequent Accounting On January 1, 2019, Caswell Company signs a...
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Transcribed Image Text:make blossom company journal entries: Crane Company leases a building to Blossom, Inc. on January 1, 2025. The following facts pertain to the lease agreement. Th
lease term is 4 years, with equal annual rental payments of S8, 278 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. The building has a fair value of $36,000, a book value to Crane of $29,000, and a useful life of 5
years. At the end of the lease term, Crane and Blossom expect there to be an unguaranteed residual value of $6,295. Crane wants to earn a return of 5% on the lease,
and collectibility of the payments is probable. This rate is known by Blossom.
Crane Company leases a building to Blossom, Inc. on January 1, 2025. The following facts pertain to the lease agreement.
1.
The lease term is 4 years, with equal annual rental payments of $8,278 at the beginning of each year.
2
3.
4.
5.
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.
The building has a fair value of $36,000, a book value to Crane of $29,000, and a useful life of 5 years.
At the end of the lease term, Crane and Blossom expect there to be an unguaranteed residual value of $6,295.
Crane wants to earn a return of 5% on the lease, and collectibility of the payments is probable. This rate is known by Blossom.
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