Sheridan Corporation entered into an operating lease to lease equipment from Sunland, Inc. on January The lease calls for
annual lease payments of $ beginning on December for each of the years of the lease. In addition, Sunland, Inc. will pay
Sheridan Corporation $ as a cash incentive for entering the lease by December In relation to the lease agreemeridan
incurred the following costs.
Sheridan's incremental borrowing rate is If the value of the lease liability is $ what amount will Sheridan record as the
value of the rightofuse asset on January at commencement of the operating lease?
Value of the rightofuse asset $
