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Francisco lensed equipment from Julia on December 31, 2021. The case is a 10-year lease with annual payments of $160,000 duc on December 31 of
Francisco lensed equipment from Julia on December 31, 2021. The case is a 10-year lease with annual payments of $160,000 duc on December 31 of each year beginning December 31, 2021. The present value of the Imase payments is $1,081,444. Francisco's incremental borrowing rate is 12% for this type of lease. The implicit rate of 10% is known loy the lessee. What should be the balance in Francisco lease ability at December 31, 2022? Multiple Choice $852 SAR $85358 $921.444 $880.098 On January 1, 2021, Packard Corporation leased equipment to Hewitt Company. The lease term is 11 years. The first payment or 5454,000 was made on January 1, 2021. Remaining payments are made on December 31 each year, beginning with December 31, 2021. The equipment cost Packard Corporation $3,465,373. The present value of the lease payments is $3,500,377. The lease is appropriately classified as a seles-type lease. Assuming the interest rate for this lease is 8%, what will be the balance reported as a liability by Hewlitt in the December 31, 2022, balance sheet? (Round your final answer to nearest dollar.) Multiple Choice $3046,377 $2508 974 $2836,087 $2,338,974
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