Question

1.Red Co. recorded a right-of-use asset of $180,000 in a 10-year finance lease. Payments of $29,294 are made annually at the end of each year. The interest rate charged by the lessor was 10%. The balance in the lease payable after two years will be: (Round your final answer to nearest whole dollar.)

2.On January 1, 2018, Packard Corporation leased equipment to Hewlitt Company. The lease term is 11 years. The first payment of $453,000 was made on January 1, 2018. Remaining payments are made on December 31 each year, beginning with December 31, 2018. The equipment cost Packard Corporation $2,996,500. The present value of the lease payments is $3,236,500. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 10%, what will be the balance reported as a liability by Hewlitt in the December 31, 2019, balance sheet? (Round final answer to the nearest dollar.)

On January 1, 2018, Gibson Corporation entered into a four-year operating lease. The payments were as follows: $23,000 for 2018, $18,500 for 2019, $17,500 for 2020, and $14,000 for 2021. What is the correct amount of total lease expense for 2019?

Answer 1