A restaurant manager has a capital lease. The lease calls for a $2,000 per month lease payment,
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A restaurant manager has a capital lease. The lease calls for a $2,000 per month lease payment, which includes $1,800 in principal and $200 in interest. Prior to entering any information about the lease payments, the manager’s operating income line on the USAR formatted income statement for this month shows a positive $20,000. What will be the amount of the manager’s operating income this month AFTER the information related to the lease is entered into the income statement?
a. $18,200
b. $18,000
c. $20,000
d. $19,800
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Related Book For
Managerial Accounting for the Hospitality Industry
ISBN: 978-1119386223
2nd edition
Authors: Lea R. Dopson, David K. Hayes
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