Homework Answers
| 1 | Discount factor=6%/4=1.5% | ||||||
| Present value of the lease payments=Lease rental*Discount factor at 1.5% for 20 years=29122.87*17.16864=$ 500000 | |||||||
| 2 | Date | General journal | Debit | Credit | |||
| June 30. | Leased asset | 500000 | |||||
| Lease liability | 500000 | ||||||
| (Lease recorded) | |||||||
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