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financial accounting CH. LEASE Leasepro Inc. leases a computer to Star Company on January 1, 2011. This non-cancelable lease had the following terms: The selling

financial accounting

CH. LEASE

Leasepro Inc. leases a computer to Star Company on January 1, 2011. This non-cancelable lease had the following terms:

The selling price of the computer on Jan. 1, 2011 is $45,913,268.99 Lease payments: $4,933,508 semiannually; first payment at January 1, 2011; remaining payments at June 30 and December 31 each year. Lease term: 6 years (12 semi-annual payments) No bargain purchase option Economic life of equipment: 6 years Implicit interest rate and lessee's incremental borrowing rate are equal. Collectibility of the rental payments is reasonably assured, and there are no lessor costs yet to be incurred

1. Compute the implicit interest rate for this lease. Enter your answer as a percent.

2. Compute interest expense that Star should recognize for the semi-annual period ending June 30,2011.

3. Compute interest expense for year ending 12/31/2011:

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