The Following Are Characteristics of a Lease Requirement
Determine the Appropriate Classification for This Lease for the of leased

question 52

Essay

The following are characteristics of a lease:
$\begin{array}{|l|l|}\hline\text { Price of leased asset from manufacturer } & 193,000 \\\hline \text { Lease payments } & 50,000 \\\hline \text { Lease term } & 5 \text { years } \\\hline \text { Lease frequency } & \text { Annual } \\\hline \text { Payment timing } & \text { End of year } \\\hline \text { Guaranteed residual value } & 35,000 \\\hline \text { Interest rate implicit in the lease agreement } & 14 \%\\\hline\end{array}$ Requirement
Determine the appropriate classification for this lease for the lessor (who is not the manufacturer)and record the journal entries for the lessor for the first year of the lease.

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Definitions:

Coordinate Resources

Involves the efficient and effective management and allocation of organizational resources, such as manpower, finances, and materials, to achieve objectives.

Performance Success

Achieving or exceeding set performance metrics in various aspects such as sales, productivity, or quality, indicating an individual's or organization's effectiveness.

Restructuring

Restructuring changes the scale and/or mix of operations to gain efficiency and improve performance.

Improve Performance

The process of increasing the efficiency, effectiveness, and productivity of an individual, team, or organization.