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On January 1, 2022, Gobert Corp. leases equipment from Mitchell, Inc. The lease calls for annual payments of $60,000 to
Posted: Tue Jul 05, 2022 1:35 pm
by answerhappygod
- On January 1 2022 Gobert Corp Leases Equipment From Mitchell Inc The Lease Calls For Annual Payments Of 60 000 To 1 (35.71 KiB) Viewed 6 times
On January 1, 2022, Gobert Corp. leases equipment from Mitchell, Inc. The lease calls for annual payments of $60,000 to be made every January 1 from 2022 through 2030. The equipment has a ten year useful life. Gobert guarantees a residual value of $20,000 at the end of the lease term, although the equipment is expected to have no value at that time. Mitchell's implicit rate, known to Gobert, is 5%. Gobert's incremental borrowing rate is 10%. The entry to record the lease at inception will include a debit to Right-of-Use Asset of: