Content

f $11$

$3$ Points

on $9$

multiple answer question.

uary $1\mathrm{.}2024,$ Lowe's inc. entered into an agreement with Traveler Inc. to lease equipment on the following terms:

The lease is for $3$ years; the useful life of the leased asset is $4.$

The lease is accounted for as a finance lease; the discount rate is $8\%.$

$$5\mathrm{.}000$ in lease payments are due at at the beginning of the period starting January $1,2024$ and on December $31$ of each year thereafter.

$4.$ There is no residual asset value.

$5.$ The present value of an annuity due at $8\%$ for $3$ years is $2\mathrm{.}78326.($Round to whole dollars$)$

December $31,2024,$ what entry will Lowe's record regarding the right$-$of$-$use asset? $($choose all that apply; round to whole lars if necessary$)$

Credit cash $$5,000$

Debit lease liability $$5\mathrm{.}000$

Credit right of use asset $$4,639$

$($D$)$ Credit right of use asset $$4\mathrm{.}295$

$($E$)$ Debit amortization expense $$4,295$