Question
On January 1, 20XX, Richardson Company leased equipment under a 3- year lease with payments of $8,000 on January 1, 20XX, 20XY, and 20XZ. The
On January 1, 20XX, Richardson Company leased equipment under a 3-
year lease with payments of $8,000 on January 1, 20XX, 20XY, and 20XZ.
The present value of the lease payments at a discount rate of 7% is $20,992.
Richardson uses straight-line depreciation with no salvage value.
The lease is considered a capital lease.
a. Calculate depreciation expense for 20XX
b. Calculate interest expense for 20XX
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Essentials Of Accounting
Authors: Leslie Breitner, Robert Anthony
11th Edition
0132744376, 978-0132744379
