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
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Chapter 18, Problem 18.3E

a.

To determine

The classification of lease and the accounting treatment and also provide necessary journal entries.

Given information:

Lease term is 5 years.

Economic life of asset is 7 years.

Fair value of the equipment is $60,000.

Interest rate is 6%

Annual lease payments are $11,198.

b.

To determine

The lease classification for the lessor

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Chapter 18 Solutions

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

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