(5 points) On January 1, 2022, Buxton Corp. signed a 6 year lease. Buxton Corp. will...
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(5 points) On January 1, 2022, Buxton Corp. signed a 6 year lease. Buxton Corp. will make payments of $96.525 each year on January 1st, with the first payment made on the day the lease was signed. If the lease payments had an initial present value of $462,431 and Buxton Corp.'s incremental interest rate is 10%, how much interest expense will the company recognize on its 2022 income statement from this finance lease? (FO 13 &15) (5 points) On January 1, 2022, Buxton Corp. signed a 6 year lease. Buxton Corp. will make payments of $96.525 each year on January 1st, with the first payment made on the day the lease was signed. If the lease payments had an initial present value of $462,431 and Buxton Corp.'s incremental interest rate is 10%, how much interest expense will the company recognize on its 2022 income statement from this finance lease? (FO 13 &15)
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Answer rating: 100% (QA)
To calculate the interest expense for the first year of the lease we need to determine the interest ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
Posted Date:
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