Prepare IBM’s January 1, 2017, journal entries at the inception of the lease.
Assume that IBM leased equipment that was carried at a cost of $148,000 to Sharon Swander Company. The term of the lease is 6 years beginning January 1, 2017, with equal rental payments of $29,018 at the beginning of each year. All executory costs are paid by Swander directly to third parties. The fair value of the equipment at the inception of the lease is $148,000. The […]