Question
Annual Payments: $25,000 Term: 5 years, first payment due when lease begins January 1, 2022, other payments to be on December 31. Discount Rate: 5%
- Annual Payments: $25,000
- Term: 5 years, first payment due when lease begins January 1, 2022, other payments to be on December 31.
- Discount Rate: 5%
The lease has been determined to be a finance lease.
Required
Calculate the following amounts:
| What is the initial value of the asset and liability? |
|
| What is the amount of interest expense for the payment on 12-31-22? |
|
| What is the amount of the Lease Payable on 12-31-23? |
|
| What is the amount of amortization expense on 12-31-24? |
|
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Handbook Of Energy Audits
Authors: Prentice-Hall
1st Edition
0881731285, 978-0881731286
