Pier10 Inc. entered into a five-year lease and recorded a right-of-use asset and lease liability of $132,000 on anuary 1. Pier10 Inc. was aware of the lessor's implicit rate of interest of 5%. The equipment under lease had an estimated five-year useful life with no residual value. The first lease payment of $29,037 was due upon commencement of the lease. Show the balance sheet presentation on December 31, and the income statement presentation for the year ended December 31.
Pier10 Inc. entered into a five-year lease and recorded a right-of-use asset and lease liability of $132,000 on anuary 1. Pier10 Inc. was aware of the lessor's implicit rate of interest of 5%. The equipment under lease had an estimated five-year useful life with no residual value. The first lease payment of $29,037 was due upon commencement of the lease. Show the balance sheet presentation on December 31, and the income statement presentation for the year ended December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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