Ayayai Corporation (“Ayayai”) manufactures equipment with an estimated economic life of 12 years. On May 30, 2020, Ayayai leases it to Gadget Corporation (“Gadget”) for a period of 10 years. Assume both companies follow ASPE. Details of the lease are as follows: ●   Equipment has a fair value and cost at the inception of the lease: $269,243. ●   Guaranteed residual value: $27,000. ●   Annual lease payment, due at beginning of each year: $34,000. ●   Lease contains no renewal options and the equipment reverts to Ayayai at the end of the lease. ●   Gadget’s incremental interest rate, as well as implicit rate is 7%. ●   Gadget uses straight-line amortization for similar equipment that it owns. ●   Ayayai has determined that collectibility of lease payments is reasonably predictable and that no additional costs will be incurred. Prepare the journal entries for the lessee and lessor at May 30, 2020, and at December 31, 2020, which is the year end for both the lessee and lessor Please help with the caluation needed for this question thank you in advance.

Glaus Leasing Company agrees to lease equipment to Jensen Corporation on January 1, 2020. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $525,000, and the fair value of the asset on January 1, 2020, is $700,000. 3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $50,000. Jensen estimates that the expected residual value at the end of the lease term will be $50,000. Jensen amortizes all of its leased equipment on a straight-line basis. 4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020. 5. The collectibility of the lease payments is probable. 6. Glaus desires a 5% rate of return on its investments. Jensen's incremental borrowing rate is 6%, and the lessor's implicit rate is unknown. Instructions (Assume the accounting period ends on…

Technoid Incorporated sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2024. The manufacturing cost of the computers was $17 million. This noncancelable lease had the following terms: Lease payments: $2,691,724 semiannually; first payment on January 1, 2024; remaining payments on June 30 and December 31 each year through June 30, 2028. Lease term: 5 years (10 semiannual payments). No residual value; no purchase option. Economic life of equipment: 5 years. Implicit interest rate and lessee's incremental borrowing rate: 6% semiannually. Fair value of the computers on January 1, 2024: $21 million. What is the interest revenue that Technoid would report for this lease in its income statement for the year ended December 31, 2024? Note: Round your answer to the nearest whole dollar.Multiple Choice   $0   $2,101,400   $1,098,497   None of these answer choices is correct.

On January 1, 2022, Lenore Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Lenore to make annual payments of $10,000 at the beginning of each year, starting January 1, 2022.  Lenore correctly accounts for the lease as a finance lease.  The machine has an estimated useful life of 6 years and a $5,000 guaranteed residual value.  The machine reverts back to the lessor at the end of the lease term.   Lenore uses the straight-line method of depreciation for all of its plant assets.  Lenore’s incremental borrowing rate is 8% and the Lessor’s implicit rate is known to be 6%.     Required:   Compute the present value of the minimum lease payments for Lenore (lessee) assuming that the anticipated value of the machine at the end of the lease term will be at least $5,000. Compute the present value of the minimum lease payments for Lenore (lessee) assuming that the anticipated value of the machine at the end of the lease term will be $3,000.