https://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni int by: GINA SHERIFF C322_DE Spring 2021 ] Bolden / Chapter 21 Homework Assignment Problem 21-08 Wildhorse Inc. manufactures an X-ray machine with an estimated life of 12 years and leases it to Sheffield Medical Center for a period of 10 years. The normal selling price of the machine is $527,495, and its guaranteed residual value at the end of the non-cancelable lease term is estimated to be $14,000. The hospital will pay rents of $64,000 at the beginning of each year. Wildhorse incurred costs of $274,000 in manufacturing the machine and $13,600 in legal fees directly related to the signing of the lease. Wildhorse has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 5%, Sheffield Medical Center has an incremental borrowing rate of 5% and an expected residual value at the end of the lease of $10,000. Click here to view factor tables. Discuss the nature of this lease in relation to the lessee. The nature of this lease in relation to the lessee is Compute the amount of the initial lease liability. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 5,275.) Initial Lease Liability s Prepare a 10-year lease amortization schedule. (Round answers to 0 decimal places e.g. 5,275.) SHEFFIELD MEDICAL (Lessee) Lease Amortization Schedule (Annuity Due Basis, GRV) Beginning Annual Lease Interest on Reduction of Lease Lease of Year Payment Plus GRV Unpaid Liability Liability Liability Initial PVProblem 21-08 - Work - Microsoft Edge https://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni Discuss the nature of this lease in relation to the lessee. The nature of this lease in relation to the lessee is Compute the amount of the initial lease liability, (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 5,275.) Initial Lease Liability Prepare a 10-year lease amortization schedule. ( Round answers to 0 decimal places e.g. 5,275.) SHEFFIELD MEDICAL (Lessee) Lease Amortization Schedule [Annuity Due Basis, GRV] Beginning Annual Lease Interest on Reduction of Lease Lease of Year Payment Plus GRV Unpaid Liability Liability Liability Initial PV 10 End of 10B https://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni Prepare all of the lessee's journal entries for the first year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to ( decimal places e.g. 5,275.) Account Titles and Explanation Debit Credit (To record the lease of x-ray equipment using finance lease method.) (To record payment of annual lease obligation.) (To record accrual of annual interest on lease obligation.) (To record amortization expense for year 1 using straight-ling method.) Suppose Chambers Medical Center incurred $6,600 of document preparation costs after the execution of the lease. How would the Initial measurement of the lease liability and right of use asset be affected? The lease liability will The right of use asset will Question Attempts: D of 3 used