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ABC Company is the lessee and will lease an asset owned by XYZ Company. The semi-annual cash payments, required to be made by ABC, are
- ABC Company is the lessee and will lease an asset owned by XYZ Company. The semi-annual cash payments, required to be made by ABC, are $500,000. The lease goes for 5 years, and starts on January 1, 2021. Assume a capital lease. The periodic payments are due on June 30 and December 31 of each year. ABC uses an interest rate of 10%. What is the present value of the lease payments?
- $3,860,867
- $1,895,393
- $3,790,787
- $5,000,000
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Principles Of Accounting
Authors: Steven M. Bragg
1st Edition
1642210773, 978-1642210774
