Billit Corporation is considering leasing a machine to a client for five years. The machine sells for
Fantastic news! We've Found the answer you've been seeking!
Question:
Billit Corporation is considering leasing a machine to a client for five years. The machine sells for $100,000 cash. The incremental borrowing rate is 8%. The implicit rate is unknown. Payments are quarterly and start at the commencement of the lease. What is the quarterly lease payment? Show your work.
Quarterly | |||
Calculation of Initial Lease Liability: | |||
Quarterly Payment | |||
Non-Lease Component* | |||
Minimum Lease Payment | |||
Present Value Factor | |||
Present Value of Mininum Lease Payment | |||
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date: