Question
KnittingCo enters into a finance lease of a spinner. During the first year of the lease KnittingCo made a payment to the lessor of $16,000,
KnittingCo enters into a finance lease of a spinner. During the first year of the lease KnittingCo made a payment to
the lessor of $16,000, which represents:
repayment of the principal portion of the lease of $12,000
repayment of the interest portion of the lease of $4,000.
How should KnittingCo classify this payment in its cash flow statement?
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The finance lease represent the liability of lease i...
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Business and Society Stakeholders Ethics Public Policy
Authors: Anne Lawrence, James Weber
14th Edition
125925433X, 9780077512941, 978-1259254338, 77512944, 978-0078029479
