Assume the same data as in P21-10 with National Airlines Co. having an incremental borrowing rate of 10%.\nInstructions\n(a) Discuss the nature of this
Assume the same data as in P21-10 with National Airlines Co. having an incremental borrowing rate of 10%.
\r\nInstructions
\r\n(a) Discuss the nature of this lease in relation to the lessee, and compute the amount of the initial lease liability.
\r\n(b) Prepare a 10-year lease amortization schedule.
\r\n(c) Prepare all of the lessee’s journal entries for the first year.