Question
IMB leased to Swander Corporation an asset recognized as a financing lease by Swander. On December 31, 2024, Swander makes the required payment to IBM.
IMB leased to Swander Corporation an asset recognized as a financing lease by Swander. On December 31, 2024, Swander makes the required payment to IBM. As of January 31, 2025, what is the amount of the lease obligation that should be shown as a current liability? Ignore the amount related to one month of interest payable.
| Beg Date | beg bal | interest | pymt | Prin paid | end bal | End Date |
| 12/31/2024 | (119,957) | (9,597) | 30,044 | 20,447 | (99,510) | 12/31/2025 |
| 12/31/2025 | (99,510) | (7,961) | 30,044 | 22,083 | (77,426) | 12/31/2026 |
| 12/31/2026 | (77,426) | (6,194) | 30,044 | 23,850 | (53,576) | 12/31/2027 |
| 12/31/2027 | (53,576) | (4,286) | 30,044 | 25,758 | (27,819) | 12/31/2028 |
| 12/31/2029 | (27,819) | (2,225) | 30,044 | 27,819 | (0) | 12/31/2029 |
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Auditing Cases An Interactive Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
5th edition
132567237, 978-0132998345, 132998343, 978-0132567237
