View Policies Show Attempt History Current Attempt in Progress Blossom incorponated leases a piece of...
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View Policies Show Attempt History Current Attempt in Progress Blossom incorponated leases a piece of machinery to Ayayal Company on January 1. 2020. under the following terms. 1. The lease is to be for 4 years with rental payments of $14,388 to be made at the beginning of each year. 2. The machinery' has a fair value of $77,298, a book value of $57,680, and an economic life of 10 years. 3. At the end of the lease term, both parties expect the machinery to have a residual value of \$28,840. To protect against a large loss, Blossom requests Ayayal to guarantee $20,380 of the residual value, which Ayayal agrees to do. 4. The lease does not transfer ownershipat the end of the lease term, does not have any bargain purchase options, and the asset Is not of a specialized nature. 5. The implicit rate is 5%, which is known by Ayayal. 6. Collectibility of the payments is probable Dote Anownt rides and frginnatien Debat Credit
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