Question: Please help me with empty cells only.( with the amount that I need to put in and the explanation) I really appreciate it. Thanks. Question
Please help me with empty cells only.( with the amount that I need to put in and the explanation) Question 1 On January 1, 2017, Larkspur Co. leased a building to Crane Corp. The relevant information related to the lease is as follows. 1. The lease arrangement is for 5 years. The building is expected to have a residual value at the end of the lease of $2,400,000 (unguaranteed). 2. The leased building has a cost of $2,520,000 and was purchased for cash on January 1, 2017. 3. The building is depreciated on a straight-line basis. Its estimated economic life is 30 years with no salvage value. 4. Lease payments are $250,000 per year and are made at the beginning of the year. 5, Crane has an incremental borrowing rate of 9%, and the rate implicit in the lease is unknown to Crane. 6. Both Larkspur and Crane are on a calendar-year basis. Click here to view the factor table (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Prepare the journal entries that Larkspur Co. should make in 2017. (Credit account titles are automatically Indented when amount lis entered. Do not Indent manually Date Account Titles and Explanation Debit Credit /1/17 Building 2520000 520000 (To record cost of the building) 50000
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