Question
On July 1, 2021, Raddow Industries leased equipment from Jones Co. in a finance lease. The present value of the lease payment discounted at 8%
On July 1, 2021, Raddow Industries leased equipment from Jones Co. in a finance lease. The present value of the lease payment discounted at 8% was $61,600. Ten annual lease payments of $8,500 are due each year beginning July 1, 2021. Jones Co. had constructed equipment recently for $53,500, and its retail fair value was $61,600. The total decrease in earnings (pretax) in Raddows December 31, 2021, income statement would be (ignore taxes):
A. $6,376.
B. $4,928.
C. $5,204.
D. $2,124.
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Clinical Audit For Doctors
Authors: Dr. Bob Ghosh, Sir Liam Donalson, Dr. Chen Sheng Low, Margaret Keane, Dr. Bhoresh Dhamija
1st Edition
1906839018, 978-1906839017
