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On July 1st, 20X1, the Youngsun Kim Corporation leased equipment to the Huaqiang Huang Corporation. Both the Youngsun Kim and Huaqiang Huang Corporation uses ASPE. The following information pertains to this lease transaction.
Required:
Problem 1: What type of lease is this for Youngsun Kim Corporation?
Problem 2: What type of lease is this for the Huaqiang Huang Corporation?
Problem 3: Calculate the annual lease payment
Problem 4: Prepare the required Journal entries for 20X1 and 20X2 for the Youngsun Kim Corporation
Problem 5: Prepare the required Journal entries for 20X1 and 20X2 for the Huaqiang Huang Corporation.
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