The Following Amortization Schedule Is for a Lease Entered into at the Start

question 14

Essay

The following amortization schedule is for a lease entered into at the start of fiscal 2012 for an asset that will be useful for 5 years.The company uses straight-line depreciation method.
Required:
Provide the appropriate presentation of this lease in the lessee's balance sheet for December 31,2013,distinguishing amounts that are current from those that are non-current.

---

Definitions:

Accounting Rate of Return

A metric used to measure the profitability of investments, calculated by dividing the average net income by the initial investment cost.

Break-Even Time

Break-even time is the period it takes for a business or project to become financially viable, covering all its costs and starting to generate profit.

Lowest Rank

Refers to the position, level, or grade of an entity or individual that is at the bottom of a hierarchical system.

Payback Periods

The length of time required to recoup the initial investment in a project or investment, measured in years or months.