Question
The following lease information was obtained by a staff auditor for a client, Kroller Inc., at December 31, 2015. Indicate how this information should be
The following lease information was obtained by a staff auditor for a client, Kroller Inc., at December 31, 2015. Indicate how this information should be presented in Krollers two-year comparative financial statements. Include any notes to the statements required to meet generally accepted accounting principles. Lease payments are made on December 31 of each year. Leased building; minimum lease payments per year; 10 years remaining life on December 31, 2014 $ 45,000 Executory costs per year 2,000 Capitalized lease value, 12% interest 343,269 Accumulated amortization of leased building at December 31, 2015 114,423 Amortization expense for 2015 22,885 Obligations under capital leases; balance at December 31, 2015 239,770 Obligations under capital leases; balance at December 31, 2014 254,259
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