Question
Suppose an operating lease calls for annual payments of $500,000 for six years. If you were to capitalize that lease, what would be the interest
Suppose an operating lease calls for annual payments of $500,000 for six years. If you were to capitalize that lease, what would be the interest expense on the Income Statement in Year 3? Assume a discount rate of 6%.
| A. | $86,723
| |
| B. | $103,953
| |
| C. | $118,552
| |
| D. | $72,851
| |
| E. | $99,854
|
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Corporate Finance Governance And Business Cycles Theory And International Comparisons
Authors: Robert E. Krainer
1st Edition
0444510494, 9780444510495
