Question
Leased assets have an expected life of 5 years. Depreciation is straight line. Annual lease payment is $1,400. Interest rate is 12%. Show your work!
Leased assets have an expected life of 5 years.
Depreciation is straight line.
Annual lease payment is $1,400.
Interest rate is 12%.
Show your work!
Question 1
Find the present value of the stream of lease payments in Exhibit. This is the Beginning-Year Liability
Question 2
Find the depreciation of an asset with an expected life of 5 years and a value equal to the present value of the lease payments in Exhibit.
Question 3
Find the total expense in Year 1 if exhibit refers to an Operating Lease
Question 4
Find the total expense in Year 1 if exhibit refers to a Capital Lease
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