Business, 20.04.2020 20:58 kiylabeasty7302

Assume that IBM leased equipment that was carried at a cost of $92,000 to Carla Vista Company. The term of the lease is 6 years December 31, 2019, with equal rental payments of $18,427 beginning December 31, 2019. The fair value of the equipment at commencement of the lease is $92,001. The equipment has a useful life of 6 years with no salvage value. The lease has an implicit interest rate of 8%, no bargain purchase option, and no transfer of title. Collectibility of lease payments for IBM is probable. Assume the sales-type lease was recorded at a present value of $92,001.

Prepare IBM's December 31, 2020, entry to record the lease transaction with Carla Vista Company.

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Assume that IBM leased equipment that was carried at a cost of $92,000 to Carla Vista Company. The t...

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