Question: question through 3 questions please Bohl Co. leased a car service station from a major oil company on January 2, 2007. Fair value of the

Bohl Co. leased a car service station from a major oil company on January 2, 2007. Fair value of the service facility at the time was $400,000. The lease is a 10-year, noncancelable lease. Bohl uses straight-line depreciation for its other various business holdings. The economic life of the facility is 15 years with zero salvage value. Title to the facility will pass to Bohl at termination of the lease. A partial amortization schedule for this lease on Bohl's book is as follows: Reduction in Payments Interest Lease Liability Liability Jan. 2, 2007 $400,000.00 Dec 31, 2007 $65,098.13 $40,000.00 $25,098.13 374,901.87 Dec 31, 2008 65,098.13 37,490.19 27,607.94 347,293.93 5. From the viewpoint of the lessee, wrifat type of lease is involved above? Operating lease Finance lease Sales-type lease None of the above 7. What is the amount of the lessee's liability to the lessor after the December 31, 2009 payment? (Rounded to the nearest dollar.) O $282,196 O $316,925 O $347,294 O $312,564 Question 8 3 pts 8. What is the amount of amortization expense recognized by the lessee on December 31, 2009? (Rounded to the nearest dollar.) O $26,667 O $27,608 O $40,000 $25,098
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
