Question
Currently, Alpha Corporation has $825,000 in bonds payable (due in 2025), $89,500 in notes payable (due in 2029), and an $82,400 discount on bonds payable.
Currently, Alpha Corporation has $825,000 in bonds payable (due in 2025), $89,500 in notes payable (due in 2029), and an $82,400 discount on bonds payable. Alpha has decided to lease a piece of equipment. The present value of the lease payments is $292,500, and Alpha will pay 35% of that amount within the next 12 months. Meanwhile, Omega Inc. has $850,000 in bonds payable (due in 2025), $96,100 in notes payable (due in 2028), and an $85,200 discount on bonds payable. Omega has also chosen to lease a piece of equipment. The present value of the lease payments is $313,950, and Omega will pay 40% of that amount within the next 12 months. Given these figures, Omega's total long-term liabilities at December 31, 2020 ________ higher than Alpha's.
$50,250
$52,005
$27,045
$24,550
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
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