On Jan 2, 2020 BED and MOLEX entered into a four-year lease contract for a piece of equipment, which was also offered for sale at $99,500. BED estimated that each machine could either be refurbished at the end of the lease or scrapped for parts, and that the PV of this residual value at BED's discount rate was $17,050. The economic life of the asset was six years. MOLEX incurred $4,200 in related direct costs for the lease. The lease required payments of $24,900 at the end of each year, commencing Dec 31, 2020.

Amounts Reported on 12/31/2020 financial statements

Implicit Rate on the Lease

Lease Receivables

Lease Expense

Lessor estimated RV

Lessor Gross Profit

Lessor's estimated RV

LL (lease liability)

RoU (right of use)

Answer rating: 100% (QA)

Answer The implicit rate on the lease is 80 The lease receivables are 24900 The lease ... View the full answer