Ivanhoe Co. as lessee records a finance lease of machinery on January 1, 2021. The...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Ivanhoe Co. as lessee records a finance lease of machinery on January 1, 2021. The seven annual lease payments of $822,000 are made at the end of each year. The present value of the lease payments at 10% is $4,002,000. Ivanhoe uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value).
(a)
Prepare an amortization table for 20121 and 2022.
Ivanhoe Co. Lease Amortization Schedule
Date
Annual Lease Receipt/Payment
Interest on Receivable/Liability
Reduction in Receivable/Liability
Lease Receivable/Liability
1/1/21
$
12/31/21
$
$
$
12/31/22
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
