Question
Blue Company recorded a right-of-use asset of $210,000 in a 10-year operating lease. Payments of $37,167 are made annually at the end of each year.
Blue Company recorded a right-of-use asset of $210,000 in a 10-year operating lease. Payments of $37,167 are made annually at the end of each year. The interest rate charged by the lessor was 12% and was known by Blue.
The balance in the right-of-use asset after two years will be:
Multiple Choice
A. $259,134.
B. $184,630.
C. $210,000.
D. $186,066.
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Risk Based Auditing Using ISO 19011 2018 CERM Academy Series On Enterprise Risk Management
Authors: Greg Hutchins
1st Edition
1732554501, 978-1732554504
