Question: could you help me check the answer, is everying correct Sandhill Corporation owned a manufacturing facility. Sandhill had purchased the building for $10,560,000, and had


could you help me check the answer, is everying correct
Sandhill Corporation owned a manufacturing facility. Sandhill had purchased the building for $10,560,000, and had recorded $4,800,000 depreciation on the facility. On January 1, 2023, Sandhill sold the building to Wildhorse Ltd. for $6,756,000, and then immediately signed a 35-year agreement to lease back the building for annual payments of $636,843, due at the start of each year. Title to the building would return to Sandhill at the conclusion of the lease. Wildhorse's implied interest rate, which was known to Sandhill, was 10%. Prepare the journal entries to be recorded by Sandhill for the 2023 fiscal year and January 1,2024 payment (assuming a December 31 year-end, and that Sandhill follows ASPE). (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Buildings under Lease \begin{tabular}{|r|} \hline 6756000 \\ \hline \end{tabular} Obligations under Lease (To record inception of lease) Obligations under Lease 636843 Cash (To record lease payment) Depreciation Expense 193028 Accumulated Depreciation - Buildings (To record depreciation expense) Deferred Profit on Sale-Leaseback 330171 Depreciation Expense 33
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
