Answered

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On January 1, 2021, Jasperse Corporation leased equipment under a finance lease designed to earn the lessor a 12% rate of return for providing long-term financing. The lease agreement specified ten annual payments of $75,000 beginning January 1, and each December 31 thereafter through 2029. A 10-year service agreement was scheduled to provide maintenance of the equipment as required for a fee of $5,000 per year. Insurance premiums of $4,000 annually are related to the equipment. Both amounts were to be paid by the lessor and lease payments reflect both expenditures. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) At what amount will Jasperse record a right-of-use asset

Sagot :

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Answer:

$442,977.5

Explanation:

Calculation for what amount will Jasperse record a right-of-use asset

Right of use asset = ($75,000 -$5,000) x PVAD, 12%, 10

Right of use asset =$70,000*6.32825

Right of use asset =$442,977.5

Therefore what Jasperse will record a right-of-use asset will be $442,977.5

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