On January 1st 2012, The Pretenders sign at 12 year non-cancelable leases on a classic Gibson Les
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On January 1st 2012, The Pretenders sign at 12 year non-cancelable leases on a classic Gibson Les Paul guitar from Shady Slim's Guitar and Harmonica Studio. This is a capital lease and the annual payments are $1,000 including $100 insurance, payable at the beginning of each year. The present value of the unguaranteed residual value is 200. The present value factor for an annuity due over 12 years at the appropriate discount rate of 10% is 7.50. At the end of the first year the net carrying value of the leasehold asset on the Pretenders balance sheet will be?
Related Book For
Modern Portfolio Theory and Investment Analysis
ISBN: 978-1118469941
9th edition
Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann
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