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15.5 please help will give like if answers r correct Exercise 15-8 (Static) Sales-type lease with selling profit; lessor; calculate lease payments [LO15-3] Manufacturers Southern
15.5 please help will give like if answers r correct
Exercise 15-8 (Static) Sales-type lease with selling profit; lessor; calculate lease payments [LO15-3] Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2024, International Machines manufactured the equipment at a cost of $85,000. Manufacturers Southern's fiscal year ends December 31. Note: Use tables, Excel, or a financial calculator. (EV of $1, PV of $1. EVA of $1, PVA of $1. EVAD of $1 and PVAD of $1) Related Information: Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate Required: 2 years (8 quarterly periods) $15,000 at the beginning of each period 2 years $112,080 8% 1. Show how International Machines determined the $15,000 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2024, and the second lease payment on April 1, 2024.
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