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    richard081882's Avatar
    richard081882 Posts: 3, Reputation: 1
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    #1

    Mar 30, 2011, 08:20 AM
    Probe Manufacturing leased an asset with a fair market value of $145,000 to Detection
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Mar 30, 2011, 08:33 AM

    The company leased an asset, so what is your question?
    richard081882's Avatar
    richard081882 Posts: 3, Reputation: 1
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    #3

    Mar 30, 2011, 09:13 AM
    .. the full question is as follows:

    Probe Manufacturing leased an asset with a fair market value of $145,000 to Detection Devices. Detection will pay Probe $25,000 annually, in advance, for the next 10 years. If Probe earned a $32,000 gross profit and 12% rate of return on the lease to Detection, prepare (1) the entry to record Probe's lease to Detection, and (2) the entry to record the interest income Probe earned on its lease to Detection in year 2.
    kcomissiong's Avatar
    kcomissiong Posts: 1,166, Reputation: 276
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    #4

    Apr 7, 2011, 08:24 AM
    The full answer is : Please show us where you attempted your assignment and we can then help you with where you went wrong.
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