A six-year capital lease expiring on December 31 specifies equal minimum annual lease payments. Part of this
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equal minimum annual lease payments. Part of this payment
represents interest and part represents a reduction in the net
lease liability. The portion of the minimum lease payment in the
fifth year applicable to the reduction of the net lease liability
should be
Less than in the fourth year.
More than in the fourth year.
The same as in the sixth year.
More than in the sixth year.
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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