Question
the following situation describes a sales-lease type in which annual lease payments of $100,000 are payable at the beginning of each year. it is also
the following situation describes a sales-lease type in which annual lease payments of $100,000 are payable at the beginning of each year. it is also correctly classified as a finance lease for the lessee.
Lease term (years) 6
Lessor's and lessee's interest rate 12%
Residual value:
Estimated fair value: $6,000
Guaranteed by lessee $8,000
the present value of an annuity due for $1 for 6 years at 12% is 4.60478 and the present value of $1 for 6 years at 12% is .50663. which of the following is the correct amount reported at the beginning of the lease before the first payment?
A. leave receivable of $463,518
B. Lease of payable $460,478
C. Right - of- use asset of $461,491
D. None of these answers are correct
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