On December 31, 2021 Your Co. leases equipment to another company. The equipment has a fair...

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On December 31, 2021 Your Co. leases equipment to another company. The equipment has a fair value of $50,000 and the cost to Your Co. was $20,000. The lease is 7 years and the implicit rate is 4%. The guaranteed residual value is $5,000. How much should the yearly lease payments be if they are paid at the beginning of the lease year? Assume this is a Sales-Type Lease. What are the journal entries needed on December 31, 2021? What are the journal entries needed on December 31, 2022? Assume instead the residual value is not guaranteed: How much should the yearly lease payments be? What are the journal entries needed on December 31, 2021? Same original problem: On December 31, 2021 Your Co. leases equipment to another company. The equipment has a fair value of $50,000 and the cost to Your Co. was $20,000. The lease is 7 years and the implicit rate is 4%. The guaranteed residual value is $5,000. Assume this is an Operating Lease and the asset has a useful life of 10 years. What are the journal entries needed on December 31, 2021? What are the journal entries needed on December 31, 2022? On December 31, 2021 Your Co. leases equipment to another company. The equipment has a fair value of $50,000 and the cost to Your Co. was $20,000. The lease is 7 years and the implicit rate is 4%. The guaranteed residual value is $5,000. How much should the yearly lease payments be if they are paid at the beginning of the lease year? Assume this is a Sales-Type Lease. What are the journal entries needed on December 31, 2021? What are the journal entries needed on December 31, 2022? Assume instead the residual value is not guaranteed: How much should the yearly lease payments be? What are the journal entries needed on December 31, 2021? Same original problem: On December 31, 2021 Your Co. leases equipment to another company. The equipment has a fair value of $50,000 and the cost to Your Co. was $20,000. The lease is 7 years and the implicit rate is 4%. The guaranteed residual value is $5,000. Assume this is an Operating Lease and the asset has a useful life of 10 years. What are the journal entries needed on December 31, 2021? What are the journal entries needed on December 31, 2022?

Answer rating: 100% (QA)

1 SalesType Lease with Guaranteed Residual Value In a salestype lease the lessor recognizes a profit at the inception of the lease a Calculation of Ye... View the full answer