Question
On January 1, 2010, Ball Co. leases a bulldozer from CAT Co. for 4years at $10,000 per year. The lease payments are due at the
On January 1, 2010, Ball Co. leases a bulldozer from CAT Co. for 4years at $10,000 per year. The lease payments are due at the end of each year. The useful life of that bulldozer is 5 years. There is no bargain purchase option at the end of the lease term. The market interest rate is 10%. Ball Co. uses straight-line depreciation. What should Ball Co. recognize for this lease in journal entries on 12/31/2010 and 12/31/2011?
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Date Account Title Debit Credit 01012010 Leased AssetBulldozer ...
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
