MODULE $12$ GRADED ASSIGNMENT

Question $12$

Linda Leasing Company signs an agreement on January $1,2025,$ to lease equipment to Swifty Company. The folliowing informatice relates ts thats ageemene.

$2.$ The fair value of the asset at January $1,2025,$ is $$72,000.$

$3.$ The asset will revert to the lecsor at the end of the lease term, at which time the asset is expected to have a residual value of $512\mathrm{.}000,$ mone of stich is guaranted.

$4.$ The agreement requires equal annual rental payments of $$21,250\mathrm{.}90$ to the lessor, beginning on January $12025.$

$5.$ The lessee's incremental borrowing rate is $5\%.$ The lessor's implicit rate is $4\%$ and is unknown to the lessee.

$6.$ Sivifty wec the ctralght$-$line depreciation method for all equipment.

Click here to view factor tables. problem. If no entry is required, select $"$No Entry' for the account tities and enter Ofor the amounts.$)$

$\backslash$table$[[$Date Account Titles and Explanation Credit$],[q,($To record the lease$)]]$

$($To record lease liability$)$