The following facts pertain to a non-cancelable lease agreement between Marin Leasing and Cullumber Group,...
70.2K
Verified Solution
Link Copied!
Question
Accounting
The following facts pertain to a non-cancelable lease agreement between Marin Leasing and Cullumber Group, a lessee (amounts in thousands).
Commencement date
May 1, 2022
Annual lease payment due at the beginning of
each year, beginning with May 1, 2022
26,864.68
Bargain purchase option price at end of lease term
3,000
Lease term
5
years
Economic life of leased equipment
10
years
Lessors cost
92,000
Fair value of asset at May 1, 2022
120,000.00
Lessors implicit rate
7
%
Lessees incremental borrowing rate
7
%
The collectibility of the lease payments by Marin is probable. Click here to view factor tables.
(a)
Compute the amount of the lease receivable at commencement of the lease. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answer to 0 decimal places, e.g. 5,275.)
Lease receivable at commencement =
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!
