# And each quarter december 31 march 31 and june 30

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and each quarter December 31, March 31, and June 30) through June 30, 2024 (three-year lease term). The florist had the option to purchase the truck on September 29, 2023, for \$14,000 when it was expected to have a residual value of \$14,000. The estimated useful life of the truck is four years. Mid-South Auto Leasing's quarterly Interest rate for determining payments was 3% (approximately 12% annually). mpanies use stralght-line depreciation or amortization. Anything Grows' Incremental Interest rate is 12% Doints eBook Hint: A lease term ends for accounting purposes when
an option becomes exercisable if it's expected to be exercised (l.e., a BPO). (FV of \$1. PV of \$1, FVA of \$1, PVA of \$1, FVAD of \$1 and PVAD of \$1) (Use appropriate factor(s) from the tables provided.) Print References Required: 1. Calculate the amount of selling profit that Mid-South would recognize In this sales-type lease. (Be careful to note that, although payments occur on the last calendar day of each quarter, since the first payment was at the beginning of the lease, payments represent an annuity due.) 2. Prepare the appropriate entries for Anything Grows and Mid-South on September 30, 2021. 3. Prepare an amortization schedule(s) describing the pattern of Interest expense for Anything Grows

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• Fall '19
• Mid-South Auto Leasing

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