Homework Answers
| Annual lease payment excluding executory costs | $ 871,953 | ( 5,700,000 / 6.53705 ) |
| Correct answer is option 4 ( i.e. $ 871,953 ). | ||
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lease equipment to Cole Company. The following information relates
to this agreement.
1.
The term of the noncancelable lease is 6 years with no renewal
option. The equipment has an estimated economic life of 6
years.
2.
The cost of the asset to the lessor is $311,000. The fair value
of the asset at January 1, 2017, is $311,000.
3.
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to this agreement.
1.
The term of the noncancelable lease is 6 years with no renewal
option. The equipment has an estimated economic life of 6
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2.
The cost of the asset to the lessor is $311,000. The fair value
of the asset at January 1, 2017, is $311,000.
3.
The asset will revert to the lessor at the...
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