Question
Fitzgerald OB/GYN signed a six-year capital lease on January 1, 2016, with payments due every December 31.Interest is calculated annually at 10%, and the present
Fitzgerald OB/GYN signed a six-year capital lease on January 1, 2016, with payments due every December 31.Interest is calculated annually at 10%, and the present value of the minimum lease payments is $13,065.
1. Calculate the amount of the annual payment that Fitzgerald's must make every December 31.
2. Calculate the amount of the lease obligation that would be presented on the December 31, 2017, balance sheet (after two lease payments have been made).
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
17th Edition
1260247783, 978-1260247787
