Sandhill Leasing Company leases a new machine to Wildhorse Corporation. The machine has a cost of $65,000 and fair value of $95,000. Under the 3-year, non-cancelable contract, Wildhorse will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2025. Sandhill expects to earn an 8% return on its investment, and this implicit rate is known by Wildhorse. The annual rentals are payable on each December 31, beginning December 31, 2025. Click here to view factor tables. (b) Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places e.g. 5,275.) Date 1/1/25 12/31/25 12/31/26 12/31/27 Rent Receipt/ Payment $ Interest (8%) Revenue/ Expense Reduction of Principal $ Receivable

On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the warehouse is usable by November 30, 2019, Elkhart will receive a bonus of 600,000. For every week after November 30 that the warehouse is not usable, the bonus will decrease by 150,000. Elkhart provides the following completion schedule: Required: 1. Assume that Elkhart uses the expected value approach. What amount should Elkhart use for the transaction price? 2. Assume that Elkhart uses the most likely amount approach. What amount should Elkhart use for the transaction price? 3. Next Level What is the purpose of assessing whether a constraint on the variable consideration exists?

Blossom Leasing Company leases a new machine to Crane Corporation. The machine has a cost of $65,000 and fair value of $85,000. Under the 3-year, non-cancelable contract, Crane will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2025. Blossom expects to earn an 8% return on its investment, and this implicit rate is known by Crane. The annual rentals are payable on each December 31, beginning December 31, 2025. Click here to view factor tables. (b) Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to O decimal places e.g. 5,275.) Date Rent Receipt/Payment 1/1/25 12/31/25 12/31/26 12/31/27 Interest (8%) Revenue/ Expense Reduction of Principal Receivat

Crane Leasing Company leases a new machine to Cullumber Corporation. The machine has a cost of $65,000 and fair value of $85,500. Under the 3-year, non-cancelable contract, Cullumber will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2025. Crane expects to earn an 8% return on its investment, and this implicit rate is known by Cullumber. The annual rentals are payable on each December 31, beginning December 31, 2025. Click here to view factor tables. (b) (c) Prepare the journal entry at commencement of the lease for Crane. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Part B) Prepare the journal entry at commencement of the lease for Sharrer. ( Credit account titles are automatically indented…