IC Leasing leased electronic equipment to Georgia-Atlantic on January 1, 2021. IC Leasing purchased the...
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IC Leasing leased electronic equipment to Georgia-Atlantic on January 1, 2021. IC Leasing purchased the equipment from International Machines at a cost of $153,255. Here is the related information:
Lease term 2 years (8 quarters)
Quarterly payments $20,000 at the beginning of each period
Economic life 2 years
Fair value of asset $153,255
Annual implicit rate 5%
What do the lessors entries include on April 1, 2021?
a.
Debit Lease Receivable by $20,000
b.
Debit Lease Receivable by $18,334 and Interest Revenue by $1,666
c.
None of the answers are correct
d.
Credit Lease Receivable by $20,000
e.
Credit Lease Receivable by $18,334 and Interest Revenue by $1,666
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