On January 1, 2014, LE Corporation Leased a Machine from LOC

question 132

Essay

On January 1, 2014, LE Corporation leased a machine from LOC for a period of three years and paid
$4,800 at the inception of the lease.
In addition, five equal rentals of $4,800 are to be paid at the beginning of each six-month period thereafter.The effective annual interest rate was 8%.The lease qualifies as a finance lease.
(a)Compute the amount of the lease liability at 1/1/x1.
(b)Complete LEC's partial amortization schedule given below.
Round amounts to the nearest dollar.

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