In the long-term liabilities section of its balance sheet at
December 31, year 1, Mene Co. reported a capital lease obligation
of $75,000, net of current portion of $1,364. Payments of
$9,000 were made on both January 2, year 2, and January 2, year
3. Mene?s incremental borrowing rate on the date of the lease
was 11% and the lessor?s implicit rate, which was known to Mene,
was 10%. In its December 31, year 2 balance sheet, what amount
should Mene report as capital lease obligation, net of current
portion?

$66,000
$73,500
$73,636
$74,250

Answer rating: 100% (QA)

The detailed answer for the above question is provide... View the full answer