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On January 2, 2018, Smith Co. leased equipment, with a fair value of $750,000, under a...

On January 2, 2018, Smith Co. leased equipment, with a fair value of $750,000, under a capital lease calling for seven annual lease payments of $130,000 beginning January 2, 2018. Smith's incremental borrowing rate on the date of the lease was 10%. However, the lessor's implicit rate, which was known by Smith, was 8%. Provide the amortization table for the lease and the journal entries required for year ended 2018 and 2020.

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ekkarill92 answered 4 months ago
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