Question
Hello, Below is the question I'm currently working on. My question to you would be, do I use the 8% i rate? American Food Services,
Hello,
Below is the question I'm currently working on. My question to you would be, do I use the 8% i rate?
| American Food Services, Inc., leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2016. The lease agreement for the $5.8 million (fair value and present value of the lease payments) machine specified four equal payments at the end of each year. The useful life of the machine was expected to be four years with no residual value. Barton and Bartons implicit interest rate was 8% (also American Food Services incremental borrowing rate). |
| American Food Services, Inc., leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2016. The lease agreement for the $5.8 million (fair value and present value of the lease payments) machine specified four equal payments at the end of each year. The useful life of the machine was expected to be four years with no residual value. Barton and Bartons implicit interest rate was 8% (also American Food Services incremental borrowing rate). |
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Managerial Accounting
Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips
1st Edition
0078110777, 9780078110771
