Question: QUESTION 10 Driver Enterprises just reported earnings before interest and taxes (EBIT) of $35,252 and interest expense of $4,046. Included in its reported operating expenses

QUESTION 10 Driver Enterprises just reported earnings before interest and taxes

QUESTION 10 Driver Enterprises just reported earnings before interest and taxes (EBIT) of $35,252 and interest expense of $4,046. Included in its reported operating expenses were lease expenses of $15,436. Using footnote data and a discount rate of 6% you have determined the present value of the company's future lease obligations to be $53,654. When calculating coverage ratios and similar measures, by how much was interest expense "underreported on the income statement by not separately accounting for the financing charges embedded within the lease payments

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