Joseph Fasi Corporation leases new equipment on December 31, 2014. The lease transfers ownership of the equipment

Question:

Joseph Fasi leases new equipment on December 31, 2014. The lease transfers ownership of the equipment to Joseph Fasi at the end of the lease. The present value of the lease payments is $178,000. After recording this lease, Joseph Fasi has assets of $1,800,000, liabilities of $1,100,000, and stockholders' equity of $700,000.
(a) Prepare the entry to record the lease.
(b) Compute and discuss the debt to total assets ratio at year-end.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...