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On 1 July 2020, Pininfarina, an Italian automotive design service, acquired equipment under a four-year finance lease agreement from ABB Robotics. The equipment had a present value of $1,077,450. The equipment had an estimated useful life of six years. The implicit rate of interest on the equipment was 8% per annum. The lease involved four payments, three annual payments on 30 June each year of $304,000 and an additional final payment at the end of the lease of $400,000 on 30 June 2024. Pininfarina will return the equipment at the end of the lease to ABB Robotics. Required: a) Complete a lease schedule for the four years up to and including 30 June 2024

On 1 July 2020, Pininfarina, an Italian automotive design service, acquired equipment under a four-year finance lease agreement from ABB Robotics. The equipment had a present value of $1,077,450. The equipment had an estimated useful life of six years. The implicit rate of interest on the equipment was 8% per annum. The lease involved four payments, three annual payments on 30 June each year of $304,000 and an additional final payment at the end of the lease of $400,000 on 30 June 2024. Pininfarina will return the equipment at the end of the lease to ABB Robotics. Required: a) Complete a lease schedule for the four years up to and including 30 June 2024

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 10MC: On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major...
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On 1 July 2020, Pininfarina, an Italian automotive design service, acquired equipment under a four-year finance lease agreement from ABB Robotics.

The equipment had a present value of $1,077,450.

The equipment had an estimated useful life of six years.

The implicit rate of interest on the equipment was 8% per annum.

The lease involved four payments, three annual payments on 30 June each year of $304,000 and an additional final payment at the end of the lease of $400,000 on 30 June 2024.

Pininfarina will return the equipment at the end of the lease to ABB Robotics.

Required:

a) Complete a lease schedule for the four years up to and including 30 June 2024

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