KnittingCo enters into a finance lease of a spinner. During the first year of the lease KnittingCo

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KnittingCo enters into a finance lease of a spinner. During the first year of the lease KnittingCo made a payment to

the lessor of $16,000, which represents:

repayment of the principal portion of the lease of $12,000

repayment of the interest portion of the lease of $4,000.

How should KnittingCo classify this payment in its cash flow statement?

Related Book For answer-question

Business and Society Stakeholders Ethics Public Policy

ISBN: 978-0078029479

14th Edition

Authors: Anne Lawrence, James Weber

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Posted Date: Jan 20, 2021 04:17 AM

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KnittingCo enters into a finance lease of a spinner. During the first year of the lease KnittingCo

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Expert Answer:

The finance lease represent the liability of lease i... View the full answer

Business and Society Stakeholders Ethics Public Policy

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