Technoid Inc manufactures computer systems Technoid leases computers to Lone Star Company on January 1, 2018 The manufacturing cost of the computers was $12 million This noncancelable lease had the following terms Lease payments $2,466,754 semiannually first payment at January 1, 2018 remaining payments at June 30 and December 31 each year through June 30, 2022 Lease term five years (10 semiannual payments) No residual value no purchase option Economic life of equipment five years Implicit interest rate and lessee's incremental borrowing rate 10 Fair value of the computers at January 1, 2018 $20 million Lone Star Company would account for this as What is the outstanding balance of the lease liability in Lone Star's June 30, 2018, balance sheet (Round your answer to the nearest dollar ) Technoid would account for this as What amount related to the lease would Technoid report in its 2018 income statement

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Question: Technoid Inc. manufactures computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost of the computers was $12 million.

Technoid Inc. manufactures computer systems. Technoid leases computers to Lone Star Company on January 1, 2018. The manufacturing cost of the computers was $12 million. This noncancelable lease had the following terms:

Lease payments: $2,466,754 semiannually; first payment at January 1, 2018; remaining payments at June 30 and December 31 each year through June 30, 2022.
Lease term: five years (10 semiannual payments).
No residual value; no purchase option.
Economic life of equipment: five years.
Implicit interest rate and lessee's incremental borrowing rate: 10%.
Fair value of the computers at January 1, 2018: $20 million.

Lone Star Company would account for this as?. What is the outstanding balance of the lease liability in Lone Star's June 30, 2018, balance sheet? (Round your answer to the nearest dollar.) Technoid would account for this as?What amount related to the lease would Technoid report in its 2018 income statement?

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