Question 8 View Policies Current Attempt in Progress The following facts pertain to anon-cancelable lease agreement between Alschuler Leasing Company and Carla Electronics, a lessee, for a computer system Commencement date October 1,2020 Lease term 6 years Economic life of leased equipment 6 years $367,702 Fair value of asset at October 1, 2020 $280,000 Book value of asset at October 1, 20204 Residual valuc at end of lease term 0- Lcssor's implicit rate 9% Lcssee's incremental borrowing rate 9% Annual lease payment due at the beginning of $75,200 each year. beginning with October 1, 2020 The collectibility of the lease payments is probable by the lessor. The asset will revert to the lessor at the end of the lease term. The straight-l ine depreciation method is used for all equipment The following amortization schedule has been prepared correctly for use by both the lessor and the lessee in accounting for this lease. The lease is to be accounted for properly as a finance lease by the lessee and as a sales-type lease by the lessor Interest (9 %) on Unpaid Liability/Receivable Lease Balance of Lease Reduction of Lease Date Payment/Receipt Liability/Receivable Liability/Receivable $367,702 10/01/20 $75,200 $75.200 10/01/20 292,502 48.875 $26,325 243,627 10/01/21 75,200 10/01/22 75.200 53274 190,353 21,926 132,285 10/01/23 75,200 17,132 58,068 10/01/24 75,200 11.906 63.294 68,991 10/01/25 75,200 6.209 68.991 -0- $451,200 $83,498 $367,702 Assuming the lessee's accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to 0 decimal places e.g. 58,971) (1) What items and amounts will appear on the lessece's income statement for the year ending September 30, 2021? $ $ (2) What items and amounts will appear on the lessee's balance sheet at September 30, 20211? Balance Sheet (Partial) Current Liabilities: $ Long-term Liabilities: Non-current Assets: (3) What items and amounts will appear ont lessec's income the year ending September 30, 2022? $ $ (4) What items and amounts will appear on the lessee's balance sheet at September 30, 2022? Balance Sheet (Partial) Current Liabilities: $ Long-term Liabilities: $ Non-current Assets: Question 8 View Policies Current Attempt in Progress The following facts pertain to anon-cancelable lease agreement between Alschuler Leasing Company and Carla Electronics, a lessee, for a computer system Commencement date October 1,2020 Lease term 6 years Economic life of leased equipment 6 years $367,702 Fair value of asset at October 1, 2020 $280,000 Book value of asset at October 1, 20204 Residual valuc at end of lease term 0- Lcssor's implicit rate 9% Lcssee's incremental borrowing rate 9% Annual lease payment due at the beginning of $75,200 each year. beginning with October 1, 2020 The collectibility of the lease payments is probable by the lessor. The asset will revert to the lessor at the end of the lease term. The straight-l ine depreciation method is used for all equipment The following amortization schedule has been prepared correctly for use by both the lessor and the lessee in accounting for this lease. The lease is to be accounted for properly as a finance lease by the lessee and as a sales-type lease by the lessor Interest (9 %) on Unpaid Liability/Receivable Lease Balance of Lease Reduction of Lease Date Payment/Receipt Liability/Receivable Liability/Receivable $367,702 10/01/20 $75,200 $75.200 10/01/20 292,502 48.875 $26,325 243,627 10/01/21 75,200 10/01/22 75.200 53274 190,353 21,926 132,285 10/01/23 75,200 17,132 58,068 10/01/24 75,200 11.906 63.294 68,991 10/01/25 75,200 6.209 68.991 -0- $451,200 $83,498 $367,702 Assuming the lessee's accounting period ends on September 30, answer the following questions with respect to this lease agreement. (Round answers to 0 decimal places e.g. 58,971) (1) What items and amounts will appear on the lessece's income statement for the year ending September 30, 2021? $ $ (2) What items and amounts will appear on the lessee's balance sheet at September 30, 20211? Balance Sheet (Partial) Current Liabilities: $ Long-term Liabilities: Non-current Assets: (3) What items and amounts will appear ont lessec's income the year ending September 30, 2022? $ $ (4) What items and amounts will appear on the lessee's balance sheet at September 30, 2022? Balance Sheet (Partial) Current Liabilities: $ Long-term Liabilities: $ Non-current Assets