Parmentier Co. leased vehicles from Collier Chevrolet on July 1, 2021, in a "finance lease". The present value of the lease payments discounted at 12% was $41,100. Ten annual lease payments of $6,500 are due each year beginning July 1, 2021. Collier had purchased the vehicles recently for $35,500, and its retail fair value was $41,100. The total decrease in earnings (pretax) in Parmentier's December 31, 2021, income statement would be (ignore taxes): Multiple Choice $4,424. $4,932. $2,369. $4,131

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To calculate the decrease in earnings pretax for Parmentiers December 31 2021 income statement due t... View the full answer