Skysong Corporation recorded a right-of-use asset for $249,000 as a result of a finance lease on December 31, 2019. Skysong’s incremental borrowing rate is 11%, and the implicit rate of the lessor was not known at the commencement of the lease. Skysong made the first lease payment of $53,025 on on December 31, 2019. The lease requires 6 annual payments. The equipment has a useful life of 6 years with no residual value. Prepare Skysong's December 31, 2020, entries

The Journal entries are as follows:

(i) On December 31, 2020

Interest expense A/c Dr. $21,557

Lease Liability A/c     Dr.  $31,468

          To cash                                 $53,025

(To record the interest expense)

Workings:

Interest expense = [($2,49,000 - $53,025) × 11%]

                             = $21,557

Lease Liability = Cash - Interest expense

                        = $53,025 - $21,557

                        = $31,468

(ii) On December 31, 2020

Amortization expense A/c Dr. $41,500

                To Accumulated Amortization (right of use)      $41,500

(To record the amortization of right - of - use of asset)

Workings:

Amortization expense:

= $2,49,000 ÷ 6 years

= $41,500

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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answer the law of increasing costs;