Essay
On January 1, 2014, LOR Company rented a machine (3-year life, no residual value, straight-line)to LEE Company for a cash rental payable each December 31, 20 11, 12, and x13.The rental is based on the regular sales price: cost, $35,665; sale price, $45,665.The agreed interest rate was 15% and the lessee retains the machine at the end of the lease term at no additional cost.
(a)The annual rental is $ _.
(b)Complete the following lease amortization schedule: 
(c)Give the lessor's and lessee's entries on the following dates: 
Correct Answer:
Verified
Correct Answer:
Verified
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