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A lease agreement that qualifies as a finance lease calls for annual lease payments of $26,269 over a six-year lease term (also the asset's useful life with the first payment at January 1, the beginni

A lease agreement that qualifies as a finance lease calls for annual lease payments of $26,269 over a six-year lease term (also the
asset's useful life with the first payment at January 1, the beginning of the lease. The interest rate is 5% FV of $1 PV of $1 FVA of
PVA of $1, FVAD of $1 and PVAD of $t) (Use appropriate factor(s) from the tables provided.)
1
Required:
a. Complete the amortization schedule for the first two payments
b. If the lessee's fiscal year is the calendar year, what would be the amount of the lease liability that the lessee would report in its
balance sheet at the end of the first year? What would be the interest payable?
Complete this question by entering your answers in the tabs below.
Required A Required B
Complete the amortization schedule for the first two payments. (Enter all amounts as positive values.)
Lease
Payment
Effective
Interest
Decrease in Outstanding
Date
01/01/2016
01/01/2016
01/01/2017
Balance
Balance
Required B >

Sep 07 2020 View more View Less

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