Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 36 2.5 pts Odin Enterprises leased equipment to Hela Company on April 1, 2019, and properly concluded the lease was a sales-type lease. Odin

image text in transcribed

Question 36 2.5 pts Odin Enterprises leased equipment to Hela Company on April 1, 2019, and properly concluded the lease was a sales-type lease. Odin used an implicit interest rate of 9% in the lease and the first of ten annual lease payments of $30,000 was due on April 1 of each year, starting in 2019. Odin had purchased the equipment for $170,000. The equipment had a residual value of $50,000 which was unguaranteed. What amount of interest revenue from the lease should Odin report in its 2019 income statement? The present value of 1 for 10 years at 9% is 0.42241. The present value of an ordinary annuity of 1 for 10 years at 9% is 6.41766. The present value of an annuity due of 1 for 10 years at 9% is 6.99525. $18,088 O $13,566 O $4,522 O $9,044

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Michael J. Jones

3rd Edition

1119977185, 9781119977186

More Books

Students also viewed these Accounting questions