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A company enters into a finance lease agreement to acquire the use of an asset for five years with lease payments of $1,200,000 starting
A company enters into a finance lease agreement to acquire the use of an asset for five years with lease payments of $1,200,000 starting next year. The leased asset has a fair market value of $5,500,000, and the present value of the lease payments is 5,850,199. Based on this information, the value of the lease payable reported on the company's balance sheet is closest to: a) 5,850,199.00 b) 5,500,000.00 c) 6,000,000.00
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