Question: **Please show calculation**, THE $19,800 answer is INCORRECT A restaurant manager has a capital lease. The lease calls for a $2,000 per month lease payment,

**Please show calculation**, THE $19,800 answer is INCORRECT

A restaurant manager has a capital lease. The lease calls for a $2,000 per month lease payment, which includes $1,800 in principal and $200 in interest. Prior to entering any information about the lease payments, the manager's operating income line on the USAR formatted income statement for this month shows a positive $20,000. What will be the lease is entered into the income statement?

A. $18,200
B. $18,000
C. $20,000
D. $19,800

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!