On January 1, 2012, Porter Corporation signed a five-year noncancelable lease for certain machinery. The terms of the lease called for:
1. Price to make annual payments of $60,000 at the end of each year (starting on December 31, 2012) for five years. Porter must return the equipment to the lessor end of this period.
2. The machinery has an estimated useful life of 6 years and no expected salvage value.
3. Porter uses the straight-line method of depreciation for all of its fixed assets.
4. Porter's incremental borrowing rate is 8%.
5. The fair value of the asset at January 1, 2012, is $275,000.
Required:
At January 1, 2012, Porter should record an asset and liability with respect to the equipment lease equal to .

Sean lives in dallas and runs a business that sells boats. in an average year, he receives $722,000 from selling boats. of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. he owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. assume that the value of this showroom does not depreciate over the year. also, if sean does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. no other costs are incurred in running this boat business. identify each of sean's costs in the following table as either an implicit cost or an explicit cost of selling boats. implicit costexplicit costthe wages and utility bills that sean pays the rental income sean could receive if he chose to rent out his showroom the salary sean could earn if he worked as a paralegal the wholesale cost for the boats that sean pays the