* Your answer is incorrect.Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor tableprovided and round final answer to 0 decimal places e.g. 5,275.)Present value of the lease payments36056 On December 31, 2019, Windsor Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called forWindsor to make annual payments of $8.092 at the lan estimated useful life of d and a $4,900 unguarfeach year of the lease, starting December 31, 2019. The machine hasresidual value. The machine reverts back to the lessor at the end of thelease term. Windsor uses the straight-line method of depreciation for all of its plant assets. Windhor's Incremental borrowing rate15% and the lessor's implicit rate is unknown

A lease is defined as a contractual agreement incorporated between two business entities where one…

On December 31, 2019, Windsor Corporation signed a 5-year on-cancelable Windsor to make annual payments of 58.092a beginning of each year of the lease starting December 31, 2019. The machine The terms of the lease called for and a $4,900 w e reverts back to the lessor at the a or all of its plantes, Windo cremental borowingrate lease term Windsor 15% the sorsi method know

On December 31, 2019, Windsor Corporation signed a 5-year on-cancelable Windsor to make annual payments of 58.092a beginning of each year of the lease starting December 31, 2019. The machine The terms of the lease called for and a $4,900 w e reverts back to the lessor at the a or all of its plantes, Windo cremental borowingrate lease term Windsor 15% the sorsi method know

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Teal Mountaln Leasing Company slgns a lease agreement on January 1, 2020, to lease electronic equipment to Sandhill Company. The term of the non-cancelable lease Is 2 years, and payments are required at the end of each year. The following Information relates to thts agreement: 1. Sandhill has the option to purchase the equlpment for S25,000 upon terminatlon of the lease. it is not reasonably certaln that Sandhill will exercse this optlon. 2. The equlpment has a cost of $300,000 and falr value of $349,000 to Teal Mountaln Leasing. The useful economic life is 2 years, with a residual value of $25,000, 3. Teal Mountaln Leasing desIres to eam a retum of 5%% en Its Investment. 4. Collectibility of the payments by Teal Mountaln Leasing Is probable. Click here bO View factor tables., Prepare the journal entries on the books of Teal Mountain Leasing to reflect the payments recelved under the lease and to recognize Income for the years 2020 and 2021. (credit account titles are automadcally…
The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Vance Company, a lessee. Commencement date January 1, 2020 Annual lease payment due at the beginning of each year, beginning with January 1, 2020 $113,864 Residual value of equipment at end of lease term, guaranteed by the lessee $50,000 Expected residual value of equipment at end of lease term $45,000 Lease term 6 years Economic life of leased equipment 6 years Fair value of asset at January 1, 2020 $600,000 Lessor's implicit rate 8% Lessee's incremental borrowing rate 8% 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. Instructions a. Prepare an amortization schedule that would be suitable for the lessee for the lease term. b. Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease…
please explain answer in detail describe each and every point and step with full explantion , computation , formulation thanks
Applying New Lease Accounting Standards for Operating Leases On January 1 of the current year, CCH Corporation entered into the following lease contract. Based on the facts, CCH Corporation classifies the lease as an operating lease. Details of lease contract Leased asset Office space Lease term 5 years Annual lease payment $115,487 Upfront fees $10,000 Cost of debt capital 5% a. Determine the amount of the lease liability that CCH will add to its balance sheet at the inception of the lease. Amount of lease liability b. What amount will be added to the balance sheet as an asset? Amount added as an asset The rest of the questions are given in pictures below. please answer all parts correctly. i will upvote. thank you!!
Owefix a. compute the amount of lease receiveable for the leaseb. discusd the bethre of the leasec. prepara an amoritization table for the lessee and lessor
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Answer is $1,818 Please explain the reasoning and calculations
am. 101.
None
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