Be on schedule. Score better.


Solved! Get answer or ask a different Question 2737

On January 1, 2016, Mary Company leased equipment, signing a five-year lease that requires annual lease payments of $20,000. The lease qualifies as a capital lease. The payments are made at year-end, and the first payment will be made at December 31, 2016. In addition, Mary guarantees the residual value to be $8,000 at the end of the lease term. Mary correctly uses the lessor’s implicit interest rate, which is 12%. The present value factors for five periods at 12% are as follows:

Present value of $10.567427

Present value of ordinary annuity of $13.604776

What is the amount of interest expense associated with the leased equipment for the year ending December 31, 2016?





Looking for a Similar Assignment? Our ENL Writers can help. Use the coupon code FIRST15 to get your first order at 15% off!
Students Love Us

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp