Question
A Corp. leased equipment for the 8-year useful life of the equipment, agreeing to pay $10,000 at the beginning of the lease term on January
A Corp. leased equipment for the 8-year useful life of the equipment, agreeing to pay $10,000 at the beginning of the lease term on January 1, 20X0, and $10,000 annually every January 1 for the next 7 years. The present value of the 8 lease payments on January 1, 20X0, using an 8% rate, was $62,000. What is the interest expense of the lease in 20X0?
O $5,200
O $4,960
O $4,160
O $6,200
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The Solitary Auditor
Authors: Michael Knapp
1st Edition
161163878X, 978-1611638783
