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Please help me and explain! A lessee accounts for a lease as an operating lease and debited the right of use asset for $200,000 on
Please help me and explain!
A lessee accounts for a lease as an operating lease and debited the right of use asset for $200,000 on 1/11x3, the beginning of the lease. The lease term is 4 years and the implicit interest rate is 10%. The annual lease payments of $63,094 are due each Dec. 31 starting 12/31/x3. What amount of amortization expense is recognized by the lessee for 20x3? O 20,000 O 0 43,094 41,677 63,094 On 1/1/x1, a lessor completed the manufacture of equipment (useful life 6 years, no residual value for $200,000 cost and immediately leased it to a lessee for 6 years. The lessor's normal selling price for this equipment is $250,000 and the lease payments are based on this amount. Lessee uses SL amortization; the implicit rate of interest is 10%. Annual lease payments are due each Dec. 31 starting 20x1. Compute the total 20x1 expense to be recorded for this lease by the lessee. 66,667 64,660 O 61,667 O 41,667 25,000Step by Step Solution
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