Question

On 31 December 20X0, Columbia Inc entored into an agrooment with Scolia Lid to leas Ltd, anticipates that the Scotia Ltd. to remove it enbered into an agrooment with Scotia Ltd to lease equipment Columbia Inc, will make four equal payments of $110.000 at the beginning of each lease year, Columbia eqipment or (2) alowing equipment wil haive a residual vaue of $88,800 at tho ond of the lease, net of removal costs Columbia Inc has the option of (t) paying $88.800 to retain the Scotia Ltd.'s impicinterest rate in this lease is 8% Columbia ine commences on 1 January 20X1. Assume that the fair value of the equipment on the opon market is 's incremental borrowing rate is 9% Columbia ina depreciates he Mased oquipement on a straght-lre basa over for years. The lease groator than the prosenl valua of the lease piyments PY of S1. PVA of $1. and PVAD of $1 ) (Use appropriate factoris) from the tables provided Required certain to enter "O" wherever required.) amortization table for this loase for Columbia Inc. (Round time value tactor to 5 decimal places and final answers to the nearest whiole dollar amount. Leave no cell blank. Be Period Beginning Incri Deerj in BalanceInterestPayment 20x2 20x3 20x4 2 reparo al e tries that Cohnt a nd wil roo rd or ha ease and the loased o up ont。20X, and Ok Round your intermediate cale lation. and nnal an n en, neemt amount. if no entry is required for a transactionlevent, select"No journal entry required in the fest account feld. Round time value factor to 5 decimal places ) hale or

Answer 1