What would both trent tents and evan eatery record

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Problem 1: Trent's Tents Inc. leased party tents to Evan's Eatery to be used for outside seating at Evan's 15 locations. The lease term is for 2 years. The economic life of the tents is 10 years. The interest rate of 10% was explicit in the lease contract. The cost of the tents to Trent's Tents is $350,000 and fair value of the 15 tents is also $350,000. The lease payments of $8,000 per tent will be made annually starting on the first day of the lease, May 1, 2026. Assume this lease is being accounted for as an operating lease (a non-capital lease). What would both Trent's Tents and Evan's Eatery record on

  • May 1, 2026
  • December 31, 2026
  • May 1, 2027

Reference no: EM132969521

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