A lessee company signed a lease for equipment from a lessor on January 1, Year 1....

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A lessee company signed a lease for equipment from a lessor on January 1, Year 1. The lease requires equal rental payments of $24.700 at the beginning of each year of the term. The PV of the lease payments is $142,990. The company pays all executory costs directly to third parties. The appropriate interest rate is 9.61%. Assume ASPE applies. Both the lessor and lessee have December 31 year ends. How much total expense will be recorded by the lessee in its books in Year 1 in relation to this lease assuming the lease is classified as an operating lease? If applicable, include interest, depreciation, and rent in the expense calculation. a $25,318 b. $25,935 c. $24,083 d. $23,465 $24,700 A lessee company signed a lease for equipment from a lessor on January 1, Year 1. The lease requires equal rental payments of $24.700 at the beginning of each year of the term. The PV of the lease payments is $142,990. The company pays all executory costs directly to third parties. The appropriate interest rate is 9.61%. Assume ASPE applies. Both the lessor and lessee have December 31 year ends. How much total expense will be recorded by the lessee in its books in Year 1 in relation to this lease assuming the lease is classified as an operating lease? If applicable, include interest, depreciation, and rent in the expense calculation. a $25,318 b. $25,935 c. $24,083 d. $23,465 $24,700

Answer rating: 100% (QA)

In case of operating lease Annual lease payments made ... View the full answer