Sur Food Corp., leased machine from AL-Shrouq Corp. the lease agreement for the O.R 1,600,000 (fair and present value of the lease payment) machine specified four equal payments at the end of each year. The implicit interest rate was 9% Required: 1. Prepare the journal entry four Muscat Corp. at the inception of the lease on January 1, 2020. 2. Prepare an amortization schedule for the four-year term of the lease Present value of an ordinary annuity of $1:n=4,i=9% is 3.23972

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Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.