Oriole Company leases a machine from Vollmer Corp. under an agreement which meets the criteria to...

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Oriole Company leases a machine from Vollmer Corp. under an agreement which meets the criteria to be a finance lease for Oriole The six-year lease requires payment of $161000 at the beginning of each year, including $24100 per year for maintenance, insurance. and taxes. The incremental borrowing rate for the lessee is 11%; the lessor's implicit rate is 9% and is known by the lessee. The present value of an annuity due of 1 for six years at 11% is 4.69590. The present value of an annuity due of 1 for six years at 9% is 4.88965. Oriole should record the leased asset at O $669393. O $787234. O $642869. O $756040. Oriole Company leases a machine from Vollmer Corp. under an agreement which meets the criteria to be a finance lease for Oriole The six-year lease requires payment of $161000 at the beginning of each year, including $24100 per year for maintenance, insurance. and taxes. The incremental borrowing rate for the lessee is 11%; the lessor's implicit rate is 9% and is known by the lessee. The present value of an annuity due of 1 for six years at 11% is 4.69590. The present value of an annuity due of 1 for six years at 9% is 4.88965. Oriole should record the leased asset at O $669393. O $787234. O $642869. O $756040.

Answer rating: 100% (QA)

Answer Annual payments maintenance 1610... View the full answer