Question

Delta Airlines provides scheduled air transportation services in the United States. Like many airlines, Delta leases many of its planes from Boeing Company . In its long-term debt disclosure note included in the financial statements for the year ended December 31, 2010, the company listed $738 million in lease obligations. The existing leases had an approximate seven-year remaining life and future lease payments average approximately $153 million per year.

Required:
1. Determine the effective interest rate the company used to determine the lease liability assuming that lease payments are made at the end of each fiscal year.
2. Repeat requirement 1 assuming that lease payments are made at the beginning of each fiscal year.



$1.99
Sales0
Views86
Comments0
  • CreatedDecember 23, 2013
  • Files Included
Post your question
5000