Question

Exercise 21-5 Your answer is partially correct. Try again. Coronado Leasing Company leases a new machine that has a cost and fair value of $72,000 to Sharrer Corporation on a 3-year noncancelable contract. Sharrer Corporation agrees to assume all risks of normal ownership including such costs as insurance, taxes, and maintenance. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2017. Coronado Leasing Company expects to earn a 9% return on its investment. The annual rentals are payable on each December 31. (b) Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Click here to view factor tables Rent Receipt/ Payment Interest Revenue/ Expense Reduction of Principal Receivable/ Liability 1/1/17 72000 HA + 12/31/17 *P 28456.43 6480 21976.43 50023.57 * 12/31/18 28456.43 4502.12 23954.30 26069.26 12/31/19 28456.43 2346.23 26110.20 40.96 Click if you would like to Show Work for this question: Open Show Work

Answer 1

Solution Annual Lease rent er PVIFA (4,3) 2000 2000/2.53130 স२०००/ 2B444

Rent Recalpt Recot vable Reduetion d Interes tRevenve Experse Labilety princtpal Payments A2000 O 6480 2964 284H 50036 12/31/13 2314 26095 4503 28444 12/ 31/1 26095 2/31/14 2349 28444