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Neri Foods Corporation leased a commercial food processor on September 30, 2024. The five-year finance lease agreement calls for Neri to make quarterly lease payments
Neri Foods Corporation leased a commercial food processor on September 30, 2024. The five-year finance lease agreement calls for Neri to make quarterly lease payments of $326,290, payable each September 30. December 31 , March 31 , June 30, with the first payment at September 30, 2024. Neri's incremental borrowing rate is 12%. Neri records amortization on a straight-line basis at the end of each fiscal year. Neri recorded the lease as follows: September 30,2024 Calculation of the present value of lease payments $326,29015.3238=$5,000,000 (rounded) *Present value of an annuity due of $1:n=20,i=3% Requlred: What would be the pretax amounts related to the lease that Neri would report in its statement of cash flows for the year ended December 31, 2024? Note: Cash outflows should be Indlcated wlth a minus sign. Do not round your Intermedlate calculatlons. Enter your answers In whole dollars and not In milllons
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