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On January 1, Cobra Corporation entered into a finance lease requiring 5 annual payments of $12,000 each beginning December 31. The present value of the
On January 1, Cobra Corporation entered into a finance lease requiring 5 annual payments of $12,000 each beginning December 31. The present value of the lease payments discounted at 8% was $47,900. The leased asset will be returned to the lessor at the end of the lease and Cobra uses the straight-line depreciation method. At the end of the first year, Cobra's total lease expense is closest to
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