On January 1, 2019, Ashly Farms leased a hay baler from Agrico Company. The lease requires Ashly to make $3,000 payments on January 1 of each year for 5 years beginning in 2019. The interest rate is 12%.   Calculate the present value of Ashly's lease payments as of January 1, 2019.

On January 1, 2019, Ballieu Company leases specialty equipment with an economic life of 8 years to Anderson Company. The lease contains the following terms and provisions: • The lease is noncancelable and has a term of 8 years. • The annual rentals are $39,200, payable at the beginning of each year. • The interest rate implicit in the lease is 11%. • Anderson agrees to pay all executory costs directly to a third party and is given an option to buy the equipment for $1 at the end of the lease term, December 31, 2026. • The cost of the equipment to the lessor is $145,500, and the fair value is approximately $223,900. • Ballieu incurs no material initial direct costs. • It is probable that Ballieu will collect the lease payments. • Ballieu estimates that the fair value is expected to be significantly greater than $1 at the end of the lease term.   Ballieu calculates that the present value on January 1, 2019, of 8 annual payments in advance of $39,200 discounted at…

Monty Corporation enters into a 7-year lease of equipment on December 31, 2019, which requires 7 annual payments of $41,100 each, beginning December 31, 2019. In addition, Monty guarantees the lessor a residual value of $18,400 at the end of the lease. However, Monty believes it is probable that the expected residual value at the end of the lease term will be $9,200. The equipment has a useful life of 7 years.Prepare Montys' December 31, 2019, journal entries assuming the implicit rate of the lease is 10% and this is known to Monty. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places e.g. 5,275.)Click here to view factor tables. Date Account Titles and Explanation Debit Credit December 31, 2019                 (To record the lease liability)…

Monty Corporation enters into a 7-year lease of equipment on December 31, 2019, which requires 7 annual payments of $41,100 each, beginning December 31, 2019. In addition, Monty guarantees the lessor a residual value of $18,400 at the end of the lease. However, Monty believes it is probable that the expected residual value at the end of the lease term will be $9,200. The equipment has a useful life of 7 years.Prepare Montys' December 31, 2019, journal entries assuming the implicit rate of the lease is 10% and this is known to Monty. (Credit account titles are automatically indented when amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places e.g. 5,275.)Click here to view factor tables. Date Enter Account Titles  Debit Credit December 31, 2019 1-       2-       (To record the lease liability)     December 31, 2019…