On June 1, 2021, Florida National leased a building. The lease agreement calls for Florida National to
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Question:
On June 1, 2021, Florida National leased a building. The lease agreement calls for Florida National to make lease payments of $3,618.18 each month for the next two years, with the first lease payment beginning June 30. The company's normal borrowing rate is 8%.
Required:
a. Calculate the present value of the lease payments. Round to the nearest whole dollar.
b. Record the lease on June 1, 2021.
Related Book For
Financial Accounting
ISBN: 978-1259914898
5th edition
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
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