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B21 * fx F G A B D E 1 Lessor leases asset to Lessee on 1/1/2020. Lease term is 4 years. Lease payment is $30,000/month + 2 greater of $6,000 or 4% of Lessee's monthly sales revenue. Lessor's implicit rate is 12%/year and this 3 rate is known by Lessee. Payments are due at the end of the month. No payment was due at the signing of the lease. Lessee expects that sales will average $100,000/month over the lease term. 4 5 Present value factors are below. 6 7 PV of si factors: i-. 12, n-4 0.63552 8 i-.01, n=48 9 0.62026 10 11 Annuity Ordinary Due 12 PV annuity factors: 13 i-12, n-4 3.03735 3.40183 14 i-,01, n 48 37.97400 38.3537 15 16 17 18 1. What amount will the Lessee recognize as a right of use asset at the inception of the lease? 19 20 21 Enter your answer in the green box: 1 22 23 24 25 26 27 28 29 30 A1 XV fx Column1 B D E E F 1 Column1 2 Accumulated lepreciation (Bal. Sht) 3 Cash (Bal. Sht 4 Deferred rent revenue (Bal. Sht) 5 Equipment (B. 1. Sht) 6 Lease payable (Bal. Sht) Lease receival le (Bal. Sht) 8 Note payable Bal. Sht) 9 Prepaid service contract (Bal. Sht) 10 Right-of-Use asset (Bal. Sht) 11 Warehouse (@bl. Sht) 12 Amortization pxpense (Inc. Stmt) 13 Cost of goods sold (Inc. Stmt) 14 Gain on sale of warehouse (Inc. Stmt) 15 Interest experse (Inc. Stmt) 16 Interest revenue (Inc. Stmt) 17 Lease expense (Inc. Stmt) 18 Lease revenue (Inc. Stmt) 19 Misc. expense (Inc. Stmt) 20 Rent revenue Inc. Stmt) 21 Sales revenue Inc. Stmt) 22 23 24 25 26 27 28 29 30 31 32 33

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