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please answer 15. On January 1, 2018 Day Co. entered into a 3 year lease agreement for an asset which has a 6 year useful
please answer 15. On January 1, 2018 Day Co. entered into a 3 year lease agreement for an asset which has a 6 year useful life. The lease requires 1 annual payment at the end of each year as follows: 12/31/18 $25,000 12/31/19 $25,000 12/31/20 $40,000 Day's incremental interest rate is 12% and the lessor's implicit rate (known to Day) is 10%. Relevant present value factors are as follows 3 periods, 10 %, single/lump sum 3 periods, 12%, single/lump sum 2 periods, 10%, ordinary annuity 2 periods, 12 %, ordinary annuity 75132 71178 1.73554 1.69005 Day's 12/31/18 balance sheet? How much will be reported as right of use (ROU) asset on a. $48,961 b. $50,786 c. $49,209 d. $47,148
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