1/1/2010 $18,000 5 7 $75,000 $85,000 The following facts pertain to a noncancelable lease between JK...

Question

Question

1/1/2010 $18,000 5 7 $75,000 $85,000 The following facts pertain to a noncancelable lease between JK Co. and Lessor Inc. Ince

This is a capital lease. What dollar amount will JK capitalize for this lease on 1/1/2010(before the required 1/1/2010 payment is made)?

Answer 1

Answer #1

Solution:

Option: $80025

Calculation of PV of Lease Payments 8000 18000 5 Residual Value (In excess of expected residual Value) Lease Payment No of pe

Hope this helps! In case of any clarifications, kindly use the comment box below

Answer 2

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