Noncancelable lease agreement

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Reference no: EM131217642

(Part Level Submission) The following facts pertain to a noncancelable lease agreement between Mooney Leasing Company and Rode Company, a lessee. Inception date: May 1, 2014 Annual lease payment due at the beginning of each year, beginning with May 1, 2014 $18,601.34 Bargain-purchase option price at end of lease term $3,520.00 Lease term 5 years Economic life of leased equipment 10 years Lessor’s cost $63,400.00 Fair value of asset at May 1, 2014 $78,400.00 Lessor’s implicit rate 11 % Lessee’s incremental borrowing rate 11 % The collectibility of the lease payments is reasonably predictable, and there are no important uncertainties surrounding the costs yet to be incurred by the lessor. The lessee assumes responsibility for all executory costs. Prepare a lease amortization schedule for Mooney Leasing Company for the 5-year lease term. (Round answers to 2 decimal places, e.g. 16.25.) MOONEY LEASING COMPANY (Lessor) Lease Amortization Schedule Date Annual Lease Payment Plus BPO Interest on Lease Receivable Recovery of Lease Receivable Lease Receivable 5/1/14 $ Entry field with incorrect answer now contains modified data 5/1/14 $ Entry field with incorrect answer now contains modified data $ Entry field with correct answer $ Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data 5/1/15 Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data 5/1/16 Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data 5/1/17 Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data 5/1/18 Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data 4/30/19 Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with incorrect answer now contains modified data Entry field with correct answer $ Entry field with incorrect answer now contains modified data $ Entry field with incorrect answer now contains modified data $ Entry field with incorrect answer now contains modified data.

Reference no: EM131217642

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Noncancelable lease agreement : The following facts pertain to a noncancelable lease agreement between Mooney Leasing Company and Rode Company, a lessee. Inception date: May 1, 2014 Annual lease payment due at the beginning of each year, beginning with May 1, 2014 $18,601.34. Entry..

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