Technoid Inc, sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2021....
Technoid Inc, sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2021. The manufacturing cost of the computers was $18 million.
This noncancelable lease had the following terms
1 Lease payments $3,035,786 semiannually, first payment at January 1, 2021; remaining payments at June 30 and December 31 each year through June 30, 2025.
2 term 5 years ( 10 semiannual payments)
3 No residual value, no purchase option,
4 Economic life of equipment 5 years
5 Implicit interest rate and lessee's incremental borrowing rate 8% semiannually
6 Fair value of the computers at January 1, 2021, S22 million.
What is the outstanding balance of the lease liability in Lone Star's June 30, 2021 balance sheet
Homework Answers
Answer:
The outstanding balance of the lease liability in Lone Star's June 30, 2021 = $17,445,565
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Technoid Inc, sells computer systems. Technoid leases computers
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