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Please find the lease payments Exercise 5-21 (Algo) Lease payments; solve for unknown interest rate [LO5-9, 5-10) On March 31, 2021, Southwest Gas leased equipment
Please find the lease payments
Exercise 5-21 (Algo) Lease payments; solve for unknown interest rate [LO5-9, 5-10) On March 31, 2021, Southwest Gas leased equipment from a supplier and agreed to pay $370,000 annually for 20 years beginning March 31, 2022. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Southwest recorded a $4,611,018 lease liability. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the interest rate implicit in the lease agreement. (Do not round intermediate calculations.) Present value of lease: $ n = 4,611,018 20 5% Lease paymentsStep by Step Solution
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