On january 1, year 1, bear company leased an asset to cub company and appropriately accounted for the lease as a direct financing lease. the asset has a fair value of $36,000 and a carrying amount of $30,000. the lease has an implicit rate of 6% and a third-party guaranteed residual value of $5,000. the lease term is three years, and the asset has a five-year useful life. lease payments of $11,897 are due at the end of the year, and the present value factor of an ordinary annuity at 6% for three years is 2.67301. the present value of a single sum at 6% and three years is .83962. assume a rate of 15.85% amortizes the net lease receivable to zero over the lease term. what amount should bear record as the amortization of deferred gross profit associated with the first lease payment made december 31, year 1?
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On january 1, year 1, bear company leased an asset to cub company and appropriately accounted for th...
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