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If you used a financial calculator or TI-84, could you please give me the steps? On December 31, 20X5, Day Co. leased a new machine
If you used a financial calculator or TI-84, could you please give me the steps?
On December 31, 20X5, Day Co. leased a new machine from Parr with the following pertinent information: 6 years $50.000 Lease term Annual rental payable at beginning of each year Useful life of machine Day's incremental borrowing rate Implicit interest rate in lease (known by Day) 8 years 15% 12% Present value of an annuity of one in advance for six periods at: 12% 15% 4.61 4.35 The lease is not renewable, and the machine reverts to Parr at the termination of the lease. The cost of the machine on Parr's accounting records is $375,500. At the beginning of the lease term, Day should record a lease liability of $230,500. $375,500. $0. $217,500Step by Step Solution
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