ACCT

Question Answered step-by-step Subject Acct2036 Question Island Creamery, leases its ice cream making equipment from Big Rock Finance Company under the following lease terms: • The lease term is five years, non-cancellable, and requires equal rental payments of $56,926 due at the beginning of each year starting January 1, 2019. • Upon inception of the lease on January 1, 2019, Big Rock purchased the equipment at its fair value of $280,000 and immediately transferred it to Island Creamery. Th...