Sheldon's Shirt Emporium leased a piece of manufacturing equipment on December 31, 20X4, classified as a finance lease. The lease requires three lease payments of $90,000 due each December 31st, with the first payment due December 31, 20X5. The contract's implied discount rate is 8% and the present value of the lease payments is $231,939. The journal entry to record the first cash payment on December 31, 20X5 will include what amount of interest expense?

Answer rating: 100% (QA)

a Given Assets beginning 214000 Equity beginning 80000 Liabilities increase 43000 Using acc... View the full answer