Refer to the following lease amortization schedule. The five
payments are made annually starting with the beginning of the
lease. A $2,600 purchase option is reasonably certain to be
exercised at the end of the five-year lease. The asset has an
expected economic life of eight years.
Lease Payment |
Cash Payment |
Effective Interest |
Decrease in Balance |
Outstanding Balance |
||||||
41,236 | ||||||||||
1 | 8,800 | ?? | ?? | 32,436 | ||||||
2 | 8,800 | 1,946 | 6,854 | 25,582 | ||||||
3 | 8,800 | 1,535 | 7,265 | 18,317 | ||||||
4 | 8,800 | 1,099 | 7,701 | 10,616 | ||||||
5 | 8,800 | ?? | ?? | ?? | ||||||
6 | 2,600 | 147 | 2,453 | 0 | ||||||
What amount would the lessee record as annual amortization on the
asset using the straight-line method, assuming no residual value?
(Round your answer to the nearest whole
dollar.)
Choices are
6254
5825
4054
5154
Lease liability balance | 41236 |
Divide by economic life of asset | 8 |
Annual amortization on the asset | 5154 |
Option D 5154 is correct |
Refer to the following lease amortization schedule. The five payments are made annually starting with the...
Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,600 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. payment cash payment Effective Interest Decrease in Balance Outstanding Balance 39,560 1 9,100 30,460 2 9,100 3,046 6,054 24,406 3 9,100 2,441 6,656 17,747 4 9,100 1,775 7,325 10,422 5 9,100 6...
Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,500 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. Lease Cash Payment Payment ?? HNM 9,600 9,600 9,600 9,600 9,600 2,500 Effective Decrease in Outstanding Interest Balance Balance 43,900 ?? 34,300 2,401 7,199 27, 101 1,897 7,703 19, 398 1,358 8, 242...
Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $1,600 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. Lease Cash Payment Payment Effective Interest Decrease in Balance ?? 7,980 7,900 7.900 7,900 7,900 1,600 ?? 1,714 1,343 950 Outstanding Balance 36, 470 28,570 22,384 15,827 8,877 6,186 6,557 6,950 ?? ??...
Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,500 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. Lease Payment Cash Payment Effective Interest Decrease in Balance ?? Outstanding Balance 43,900 34,380 27,101 19,398 11, 156 ?? 9,600 9,600 9,600 9,600 9,600 2,500 N 2,401 1,897 1,358 7,199 7,703 8, 242...
Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,000 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. Lease Payment Cash Payment Effective Interest Decrease in Balance Outstanding Balance 34,600 1 8,000 ?? ?? 26,600 2 8,000 2,660 5,340 21,260 3 8,000 2,126 5,874 15,386 4 8,000 1,539 6,461 8,925 5...
Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $1,700 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. payment cash effective interest decrease in balance outstanding balance 39,670 1 8,600 31,070 2 8,600 1,864 6,736 24,334 3 8,600 1,460 7,140 17,195 4 8,600 1,032 7,568 9,626 5 8,600 6 1,700 96...
Refer to the following lease amortization... Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $2,000 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years. Lease Payment Cash Payment Effective Interest Decrease in Balance Outstanding Balance 34,600 1 8,000 ?? ?? 26,600 2 8,000 2,660 5,340 21,260 3 8,000 2,126 5,874 15,386...
Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable Cash Payment Effective Interest Decrease in balance Payment DOWN 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 7,033 6,557 6,024 5,427 4,758 4,209 3,170 11,000 3,967 4,443...
Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable. Payment Cash Payment Effective Interest Decrease in balance Outstanding Balance 63,282 1 10,000 0 10,000 53,282 2 10,000 6,394 3,606 49,676 3 10,000 5,961 4,039 45,638 4 10,000 5,477...
Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable. Payment Cash Payment Effective Interest Decrease in balance con AWN 6,996 6,436 5,831 5,178 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 7,004 7,564 8, 169...