On December 31, year 1, Eve Company leased a machine under a capital (finance) lease for a

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On December 31, year 1, Eve Company leased a machine under a capital (finance) lease for a period of 10 years, contracting to pay $ 50,000 on signing the lease and $ 50,000 annually on December 31 of each of the next nine years. The present value at December 31, year 1 of the 10 lease payments discounted at 10% was $ 338,000. At December 31, year 2, Eve’s total capital (finance) lease liability is:
a. $ 303,980
b. $ 266,800
c. $ 259,200
d. $ 243,000
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Related Book For  answer-question

Intermediate Accounting

ISBN: 978-0132162302

1st edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

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