Question
On January 1, year1 Muske Trucking Company leased a semitractor and trailer for five years. Annual payments of $ 30862 are to be made every
On January 1, year1 Muske Trucking Company leased a semitractor and trailer for five years. Annual payments of $30862 are to be made every December 31, beginning December 31, Year1. Interest expense is based on a rate of 6%. The present value of the minimum lease payments is $130000 and has been determined to be greater than 90% of the fair market value of the asset on January 1, Year1. Complete the first two lines of the following amortization chart. Round all your calculatons to the nearest dollar.
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Date | Lease Payment | Interest Expense | Reduction of Obligation | Lease Obligation |
| 1/01/Yr1 |
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| 12/31/Yr1 |
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| 12/31/Yr2 |
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Accounting Information Systems
Authors: Marshall B. Romney, Paul J. Steinbart
13th edition
978-0133428537
