Question: please solve A through E correctly and show your work for any values you calculated Reporting a Sales-Type Lease-Lessor Oni january 1 of Year 1,


Reporting a Sales-Type Lease-Lessor Oni january 1 of Year 1, Ashe Company entered into a five year equipment lease (wth no renewal aptions) requiring payments of 510,000 , with the frst payment due immediotely. The lessor's implicit interest rate, known to Ashe is 6%. Ownership of the equipment remains with the lesror at empiration of the lease. There is no option to punchase the peoperty at the and of the lease term and the equigment is expected to have no resillaal value. The equipment has an estimased economic life of fore years. Answer the following questions from the lessors perspecove, assuming that leased equipment was kamed in the lessors tnancial reconds at s36,000. Required a. Cacilate the value of the hase recevable as the comnencement of the lease. - Note: Hound yoir answer to the nrarest whole dollar. 3 b. Prepare a schedule of the lease receivable for the lessor for the fease term- - Note: found each amourt in the schedule to the nearest whole dollaz. Use the rounded amount for later calculations in the schedule. Prepare journal entries on January 1 and December 31 of Year 1 and Year 2 for the lessor. Note: Round your answers to the nearest whole dollar. d. What amounts would be presented related to this lease in the lessor's balance sheet as of December 31 of Year 1 ? - Note: Round your answers to the nearest whole dollar. e. What amounts would be presented related to this lease in the lessor's income statement for the year ended December 31 of Year 1 ? - Note: Round your answers to the nearest whole dollar. - Note: Do not use negative signs with your answers
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