PLEASE SOLVE $($D$)$

Use a spreadsheet to prepare an amortization schedule for Cullumber for the lease term including the expected lease renewal. $($Round answers to $0$ decimal places, e$.$g$.5\mathrm{.}275.)($c$)$

Your answer is correct. Entry" for the account titles and enter $0$ for the amounts. Record journal entries in the order presented in the problem. Round answers to $0$ decimal places, e$.$g$.5\mathrm{.}275.)$ Your answer is partially correct.

Provide Cullumber's SFP disclosure for all of the amounts that would appear concerning the lease at December $31,2024.($Round answers to $0$ decimal places, e$.$g$.5\mathrm{.}275.)$

CULLUMBER MINING CORPORATION

Statement of Financial Position $-$ Partial

December $31,2024$

Attempts: $3$ of $5$ usedThe following information relates to the agreement.

The term of the non$-$cancellable lease is three years, with a renewal option of one additional year at the annual rate of $140\%$ of the initial payment. The equipment has an estimated economic life of $10$ years.

The asset's fair value at April $1,2023,$ is approximately $$1\mathrm{.}2$ million.

Cullumber assumes direct responsibility for all executory costs for the excavation equipment.

The initial term of the lease agreement requires equal annual rental payments of $$130,000$ to Bertrand, beginning on April $1,2023.$

The lessee's incremental borrowing rate is $13\%.$ Bertrand's implicit rate is $12\%$ and is known to Cullumber.

Cullumber has a calendar year end.

Cullumber's operations manager says that there is a $85\%$ chance that the renewal period will be exercised.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.

$($a$)$

Your answer is correct.

Lease payments liability $

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