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Question 13 Not yet answered Points out of 3.00 The Herbertson Company leases machines to clients. Annual rentals are paid each year, with the first
Question 13 Not yet answered Points out of 3.00 The Herbertson Company leases machines to clients. Annual rentals are paid each year, with the first payment due on the day the lease begins. A machine with a book value of $10,000 is leased. Unguaranteed salvage value is $1.000. Lease term is five years. Herbertson's interest rate is 5%. What is the annual lease payment? Select one O a. $2,261.33 O b. $2,027.40 O c. $2,199.76 O d. $2,128.77 Oe. $1,979.78 Flag question Question 14 Not yet answered Points out of Skor Co. leased equipment to Douglas Corp. on January 2, 2018, for an 8-year period expiring December 31, 2025 Equal payments under the lease are $600,000 and are due on January 2 of each year. The first payment was made on January 2, 2018. The cost of the equipment is $2,800,000. The lease is appropriately accounted for as a sales- type lease. The present value of the lease payments is $3,300,000. What is the effect on Sales Revenue for the year ended December 31, 2018? Flag question Select one O a. $3,300,000 O b. $500,000 OC. $2,700,000 O d. $600,000 O e. $2,800,000
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