N Corp. entered into a nine-year finance lease on a warehouse on December 31, 2021. Lease payments
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N Corp. entered into a nine-year finance lease on a warehouse on December 31, 2021. Lease payments of $32,000, which includes maintenance services of $1,400, are due annually, beginning on December 31, 2022, and every December 31 thereafter. N Corp. does not know the interest rate implicit in the lease; N's incremental borrowing rate is 10%. The rounded present value of an ordinary annuity for nine years at 10% is 5.7590. What amount should N report as recorded lease liability at December 31, 2021?
Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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