Blossom Corp. is a manufacturer of truck trailers. On January 1, 2021, Blossom Corp. leases 10 trailers to Sunland Company under a 7-year noncancelable lease agreement. The following information about the lease and the trailers is provided: 1. 2. 3. 4. Equal annual payments that are due on January 1 each year provide Blossom Corp. with an 8% return on net investment. Titles to the trailers pass to Sunland at the end of the lease. The fair value of each trailer is $51,700. The cost of each trailer to Blossom Corp. is $47,500. Each trailer has an expected useful life of nine years. Collectibility of the lease payments is probable. Click here to view factor tables.Prepare a lease amortization schedule for Blossom Corp. for the first three years.
Blossom Corp. is a manufacturer of truck trailers. On January 1, 2021, Blossom Corp. leases 10 trailers to Sunland Company under a 7-year noncancelable lease agreement. The following information about the lease and the trailers is provided: 1. 2. 3. 4. Equal annual payments that are due on January 1 each year provide Blossom Corp. with an 8%
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