Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition
1st Edition
ISBN: 9780134047430
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
Question
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Chapter 18, Problem 18.11E

a.

To determine

The classification of lease and the accounting treatment.

Given information:

Lease term is 10 years.

Economic life of asset is 15 years.

Fair value of the equipment is $567,548.

Interest rate is 5%

Annual lease payments are $70,000

Lessee depreciates the asset on SLM basis.

b.

To determine

To prepare: The amortization table for the lessee from 2016 through 2018 using effective interest rate method.

Given information:

Lease term is 4 years.

Fair value of the asset is $449,999.

Interest rate is 10%

c.

To determine

To prepare: The journal entries for the lessee.

d.

To determine

To prepare: The journal entries for the lessee, if it classifies as an operating lease.

e.

To determine

The type of lease for lessor.

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Chapter 18 Solutions

Intermediate Accounting - Myaccountinglab - Pearson Etext Access Card Student Value Edition

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