Business, 06.05.2020 05:45, junkletter6266

Rumsfeld Corporation leased a machine on December 31, 2021, for a three-year period. The lease agreement calls for annual payments in the amount of $19,000 on December 31 of each year beginning on December 31, 2021. Rumsfeld has the option to purchase the machine on December 31, 2024, for $23,000 when its fair value is expected to be $33,000. The machine's estimated useful life is expected to be five years with no residual value. The appropriate interest rate for this lease is 10%. n, i PV of $1 PV, ordinary annuity PV, annuity due 1 period, 10% 0.90909 0.90909 1.00000 2 periods, 10% 0.82645 1.73554 1.90909 3 periods, 10% 0.75131 2.48685 2.73554 Required: 1. Calculate the amount to be recorded as a right-of-use asset and the associated lease payable. 2. Prepare Rumsfeld's journal entries for this lease for 2021 and 2022.

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Rumsfeld Corporation leased a machine on December 31, 2021, for a three-year period. The lease agree...