Question: please help Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1,2021 . The manufacturing cost of the computers was
Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1,2021 . The manufacturing cost of the computers was $19 million. This noncancelable lease had the following terms: - Lease payments: $3,287,947 semiannually; first payment at January 1, 2021; remaining payments at June 30 and December 31 each year through June 30,2025. - Lease term: 5 years (10 semiannual payments). - No residual value; no purchase option. - Economic life of equipment: 5 years. - Implicit interest rate and lessee's incremental borrowing rate: 9% semiannually. - Fair value of the computers at January 1, 2021: $23 million. What is the outstanding balance of the lease liability in Lone Star's June 30, 2021, balance sheet? (Round your answer to the nearest whole dollar.) $23,000,000.$18,198,191.$19,198,200. None of these answer choices is correct
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
