The following facts partain to a noncancelabla lease agreement between Blocsom Leasing Company and Wildhorse Company, a
lesses.
Commencement date
January
Annual lease payment due at the beginning of
ach year, beginning with January $
Residual value of equipmant at end of lase term,
zuaranteed by the lesese $
Expected residual value of aquipment at and of lease term $
Lease term
yara
Economic life of leased aquipment
yars
Fair value of aseat at January
$
Lessor's implicit rate
Lessee's incremental borrowing rate
The asset will revart to the lessor at the and of the lease term. The lesses uses the straightline amortization for all leased aquipment.
Click hare to viaw factor tables.
a
Your answer is partially corract.
Prepare an amortization schedula that would be suitable for the lesses for the lease tarm. Round present value factor calculations
to decimal places, es and the final answers to decimal places eg
