solved : The following facts pertain to a non-cancelable lease agreem
The following facts pertain to a non-cancelable lease agreement…The following facts pertain to a non-cancelable lease agreement between Sheridan Leasing Company and Skysong Company, a lessee. Commencement date May 1, 2020 Annual lease payment due at the beginning of each year, beginning with May 1, 2020 $46962.82 Bargain purchase option price at end of lease term 12,000 Lease term 4 years Economic life of leased equipment 12 years Lessor’s cost $19000 Fair value of asset at May 1, 2020 $181999.99 Lessor’s implicit rate 6 % Lessee’s incremental borrowing rate 6 %Business Accounting ACC 201
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