Computing Lease Liability Lessee Company enters into a 6 - year finance lease of non - specialized
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Question:
Computing Lease Liability Lessee Company enters into a year finance lease of
nonspecialized equipment with Lessor Company on January
Lessee has agreed to pay $ annually beginning immediately on
January The lessor estimates the residual value of the
equipment to be $ at lease end, but the lessee has not
guaranteed the residual value. The economic life of the asset is
years. The lessees incremental borrowing rate is and the
lessors implicit rate is not readily determinable by the lessee
company. What is the value of the lease liability on January
assuming that the lease is properly classified as a finance
lease?
Related Book For
Intermediate Accounting
ISBN: 9780136946694
3rd Edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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