Presented below are three different lease transactions that occurred for Ruggiero Inc in 2017 Assume that all lease contracts start on January 1, 2017 In no case does Ruggiero receive title to the properties leased during or at the end of the lease term Lessor Judson Delivery Hester Co Gunselman Auto Type of property Computer Delivery equipment Automobile Yearly rental $5,400 $4,600 $4,100 Lease term 6 years 4 years 2 years Estimated economic life 7 years 7 years 5 years Fair value of lease asset $35,000 $26,500 $18,500 Present value of the lease rental payments $33,500 $20,500 $13,900 Bargain purchase option None None None b How should the lease transaction for Hester Co be recorded in 2017 (Credit account titles are automatically indented when amount is entered Do not indent manually ) c How should the lease transaction for Judson Delivery be recorded on January 1, 2017

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Question: Presented below are three different lease transactions that occurred for Ruggiero Inc. in 2017. Assume that all lease contracts start on January 1, 2017. In

Presented below are three different lease transactions that occurred for Ruggiero Inc. in 2017. Assume that all lease contracts start on January 1, 2017. In no case does Ruggiero receive title to the properties leased during or at the end of the lease term.

	Lessor
	Judson Delivery	Hester Co.	Gunselman Auto
Type of property	Computer	Delivery equipment	Automobile
Yearly rental	$5,400	$4,600	$4,100
Lease term	6 years	4 years	2 years
Estimated economic life	7 years	7 years	5 years
Fair value of lease asset	$35,000	$26,500	$18,500
Present value of the lease rental payments	$33,500	$20,500	$13,900
Bargain purchase option	None	None	None

b. How should the lease transaction for Hester Co. be recorded in 2017? (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

c.How should the lease transaction for Judson Delivery be recorded on January 1, 2017?

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