Larkspur Company leases an automobile with a fair value of $20,991 from Matthew Motors, Inc., on the following terms. 1. Non-cancelable term of 50 months. Rental of $440 per month (at the beginning of each month). (The present value at 0.5% per month is $19,520.) Larkspur guarantees a residual value of $1,330 (the present value at 0.5% per month is $1,036). Larkspur expects the probable residual value to be $1,330 at the end of the lease term. 4. Estimated economic life of the automobile is 60 months. 5. Larkspur's incremental borrowing rate is 6% a year (0.50% a month). Matthew's implicit rate is unknown. 2. 3. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Your answer has been saved. See score details after the due date. What is the nature of this lease to Larkspur? (b) The nature of this lease is a/an finance List of Accounts lease. Present value of the lease payments $ Attempts: 1 of 1 used What is the present value of the lease payments to determine the lease liability? (Round answer to 0 decimal places, e.g. 5,275.)

Splish Brothers Company leases an automobile with a fair value of $13,924 from John Simon Motors, Inc., on the following terms: 1.   Non-cancelable term of 50 months. 2.   Rental of $280 per month (at the beginning of each month). (The present value at 0.5% per month is $8,873.) 3.   Splish Brothers guarantees a residual value of $1,580 (the present value at 0.5% per month is $920). Delaney expects the probable residual value to be $1,580 at the end of the lease term. 4.   Estimated economic life of the automobile is 60 months. 5.   Splish Brothers’s incremental borrowing rate is 6% a year (0.5% a month). Simon’s implicit rate is unknown. Click here to view factor tables.(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)     What is the nature of this lease to Splish Brothers? The nature of this lease is a/an select a nature of the lease…

YK Incorporated leased road building equipment from Bajan Leasing on January 1, 2021. Bajan purchased the equipment from International Machines at a cost of $148,930.   Related Information: Lease term 2 years (4 semi-annual periods) Quarterly rental payments $40,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $148,930 Implicit interest rate 10% (Also lessee’s incremental borrowing rate)     Required:Prepare a lease amortization schedule and appropriate entries for Manufacturers Southern from the beginning of the lease through January 2022. Amortization of the right-of-use asset is recorded at the end of each fiscal year (December 31) on a straight-line basis.

On 1/1/21, Sargento leased equipment under a two-year operating lease agreement from Great American Leasing, which typically finances equipment for other companies at an annual interest rate of 4%. The lease documentation calls for four rent payments of $15,500 each, payable semiannually on June 30 and December 31 each year. The equipment was acquired by Great Amerian Leasing at a cost of $101,000 and were expected to have a useful life of five years with no residual value. Both firms record amortization and depreciation semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required:1. Prepare appropriate journal entries recorded by Great American Leasing for the first year of the lease.

At the beginning of its fiscal year, Lakeside Incorporated leased office space to LTT Corporation under a eight-year operating lease agreement. The contract calls for quarterly rent payments of $29,000 each. The office building was acquired by Lakeside at a cost of $2.4 million and was expected to have a useful life of 30 years with no residual value. What will be the effect of the lease on LTT’s earnings for the first year (ignore taxes)? Note: Enter your answer rounded to the nearest whole dollar.

Splish Brothers Company leases an automobile with a fair value of $13,924 from John Simon Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months.2. Rental of $280 per month (at the beginning of each month). (The present value at 0.5% per month is $8,873.)3. Splish Brothers guarantees a residual value of $1,580 (the present value at 0.5% per month is $920). Delaney expects the probable residual value to be $1,580 at the end of the lease term.4. Estimated economic life of the automobile is 60 months.5. Splish Brothers’s incremental borrowing rate is 6% a year (0.5% a month). Simon’s implicit rate is unknown. Click here to view factor tables.(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)   Collapse question part(a) What is the nature of this lease to Splish Brothers? The nature of this lease is a/an select a nature of the leasefinancelease. Collapse question part(b) What is the present value of the lease payments to determine…