KaiaCo signed an agreement on January 1, 2021 for leased equipment under a 3-year lease with...
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KaiaCo signed an agreement on January 1, 2021 for leased equipment under a 3-year lease with payments of $8,000 on January 1, 2021, 2022, and 2023. The present value of the lease payments at a discount rate of 7% is $20,992. She uses straight-line depreciation with no salvage value. The lease is considered a Finance lease. Round your answers to the nearest dollar, and do NOT enter dollar signs or punctuation. For example, enter $5,500 as 5500. a. Calculate depreciation expense for 2021. b. Calculate interest expense for 2021. KaiaCo signed an agreement on January 1, 2021 for leased equipment under a 3-year lease with payments of $8,000 on January 1, 2021, 2022, and 2023. The present value of the lease payments at a discount rate of 7% is $20,992. She uses straight-line depreciation with no salvage value. The lease is considered a Finance lease. Round your answers to the nearest dollar, and do NOT enter dollar signs or punctuation. For example, enter $5,500 as 5500. a. Calculate depreciation expense for 2021. b. Calculate interest expense for 2021.
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Related Book For
Auditing And Assurance Services
ISBN: 9781266796852
9th Edition
Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau
Posted Date:
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