Business, 07.05.2021 01:00 xojade

Concord Corporation leases equipment from Falls Company on January 1, 2020. The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers 3 years of the equipmentâs 8-year useful life, and the present value of the lease payments is less than 90% of the fair value of the asset leased. Required:
Prepare Concordâs journal entries on January 1, 2020, and December 31, 2020. Assume the annual lease payment is $48,000 at the beginning of each year, and Concordâs incremental borrowing rate is 7%, which is the same as the lessorâs implicit rate.

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Concord Corporation leases equipment from Falls Company on January 1, 2020. The lease agreement does...

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