Help me correct the two incorrect answers outlined in red for this intermediate accounting question in the screenshot?Skysong Company leased equipment from Costner Company, beginning on December The lease term is years and requires
equal rental payments of $ at the beginning of each year of the lease, starting on the commencement date December
The equipment has a fair value at the commencement date of the lease of $ an estimated useful life of years, and no
estimated residual value. The appropriate interest rate is
Click here to view factor tables.
Prepare Skysong's and journal entries, assuming Skysong depreciates similar equipment it owns on a straightline basis.
Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use decimal
places as displayed in the factor table provided and round final answers to decimal places, eg
Credit
RightofUse Asset
Lease Liability
To record lease liability
