Entity A leased a machine on January 1, 2018, from LeaseCo for a
four-year period. The lease agreement calls for annual payments in
the amount of $360,000 on January 1, 2018 and on December 31 of
each year beginning on December 31, 2018. The machine's estimated
useful life is expected to be four years with no residual value.
The appropriate interest rate for this lease is 12%.
1. Calculate the amount to be recorded as a right-of-use asset
and the...