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E 5 - 2 5 Lease payments LO 5 - 9 , LO 5 - 1 0 On June 3 0 , 2 0 2
E Lease payments LO LO
On June FlyByNight Airlines leased a jumbo jet from Boeing Corporation. The terms of the lease require FlyByNight to make
annual payments of $ on each June Generally accepted accounting principles require this lease to be recorded as a liability
for the present value of scheduled payments. Assume that a interest rate properly reflects the time value of money in this situation.
Required:
At what amount should FlyByNight record the lease liability on June assuming that the first payment will be made on June
At what amount should FlyByNight record the lease liability on June before any payments are made, assuming that the first
payment will be made on June
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