On January 1, 2021, XYZ Company leased a machinery to another entity with the following...
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Accounting
On January 1, 2021, XYZ Company leased a machinery to another entity with the following details:
Cost of machinery 1,724,800 Residual Value guarantee 250,000 Lease term 5 years Useful life of the machinery 5 years Implicit interest rate 8% (round of PVF to four (4) decimal places) The annual rental is payable in advance on January 1 of each year starting January 1, 2021. The lease provides for a transfer of title to the lessee at the end of the lease term.
Required: a) Annual Rent b) Gross investment c) Net investment d) Unearned interest income e) Amortization table
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