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Kristen Limited and Bell Limited enter into a finance lease agreement with the following terms: lease term is 8 years estimated economic life of the
Kristen Limited and Bell Limited enter into a finance lease agreement with the following terms:
lease term is 8 years
estimated economic life of the leased asset is 10 years
4 annual rental payments of $30 000 each payable in advance
residual value at the end of the lease term is not guaranteed by the lessee
interest rate implicit in the lease is 8%.
On inception date, the present value of the minimum lease payments is:
Select one:
$99 364
$107 312
$120 000
None of these
$111 767
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