Refer to the following lease amortization schedule. The 10 payments are made annually starting with the...

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Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the leas

business accounting

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Answer 1

Answer #1

Solution:

Amount of annual amortization to be recorded by lessee = Present value of lease / Period covered by lease

= $69,611 / 10 = $6,961

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Answer 2

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