On January 1, 2010, Ball Co. leases a bulldozer from CAT Co. for 4years at $10,000 per year. The lease payments are due at the end of each year. The useful life of that bulldozer is 5 years. There is no bargain purchase option at the end of the lease term. The market interest rate is 10%. Ball Co. uses straight-line depreciation. What should Ball Co. recognize for this lease in journal entries on 12/31/2010 and 12/31/2011?

Answer rating: 100% (QA)

Date Account Title Debit Credit 01012010 Leased AssetBulldozer ... View the full answer