The Bobo Company leased equipment from Bolinger Industries on January 1, 2013. Bolinger purchased the equipment at a cost of $270,000. Required:
1. Calculate the amount of dealer's profit that Bolinger would recognize in this sales-type lease. Round to nearest dollar. Show calculations.
2. Prepare the appropriate entries for Bolinger on January 1, 2013. Round to nearest dollar. Show calculations.
3. Prepare the appropriate entry for Bolinger on December 31, 2013. Round to nearest dollar.

Question

The Bobo Company leased equipment from Bolinger Industries on January 1, 2013. Bolinger purchased the equipment at a cost of $270,000.  Required:
1. Calculate the amount of dealer's profit that Bolinger would recognize in this sales-type lease. Round to nearest dollar. Show calculations.
2. Prepare the appropriate entries for Bolinger on January 1, 2013. Round to nearest dollar. Show calculations.
3. Prepare the appropriate entry for Bolinger on December 31, 2013. Round to nearest dollar.

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The Answer of The Bobo Company leased equipment from Bolinger Industries on January 1, 2013. Bolinger purchased the equipment at a cost of $270,000.  Required:
1. Calculate the amount of dealer's profit that Bolinger would recognize in this sales-type lease. Round to nearest dollar. Show calculations.
2. Prepare the appropriate entries for Bolinger on January 1, 2013. Round to nearest dollar. Show calculations.
3. Prepare the appropriate entry for Bolinger on December 31, 2013. Round to nearest dollar.

The Bobo Company Leased Equipment from Bolinger Industries on January