On January 1, 2026, Au5R Company leased a machine. The lease requires annual payments of $50,000 every December 31 for twenty years with the first payment being due on December 31, 2026. The interest rate on the lease is 10% and Au5R Company will record amortization on the leased asset using the double-declining balance method. Assume the machine had a twenty-five year remaining useful life at January 1, 2026 and the lease contract requires the machine to be returned to the lessor at the end of the lease. 

Calculate the amount of amortization expense recorded on the leased asset that would be reported in Au5R Company's 2028 income statement

Answer rating: 100% (QA)

Given Lease Payments per annum 50000 Lease Term 20 years Interest ... View the full answer