Chapter $15$ Teamwork

the interest rate implicit in the lease payments is $6\%.$ Both companies use straight$-$line depreciation.

calculations.

How should this lease be classified $($a$)$ by Greenwald Co$.($the lessee$)$ and $($b$)$ by Moss Industries $($the lessor$)?$

Prepare an amortization schedule$($s$)$ describing the pattern of interest over the lease term for the lessee and the lessor on the Amortization tab.

end of the lease term totalled $$1,500.$

Use formulas to calculate the following:

Lessees Calculation of the PV of the Minimum Lease Payments:

ALL Green cells should be formulas, no hard coded information in any green cell.

ALL Blue cells should be typed in to match the correct text

How should this lease be classified?