On January 1, year 1, Harrow Co. as lessee signed a five-year noncancelable equipment lease with annual
Fantastic news! We've Found the answer you've been seeking!
Question:
noncancelable equipment lease with annual payments of
$100,000 beginning December 31, year 1. Harrow treated this
transaction as a capital lease. The five lease payments have a
present value of $379,000 at January 1, year 1, based on interest
of 10%. What amount should Harrow report as interest expense
for the year ended December 31, year 1?
$37,900
$27,900
$24,200
$0
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date: