Skor Co. leased equipment to Douglas Corp. on January 2, 2021 for a 7-year period expiring December
Fantastic news! We've Found the answer you've been seeking!
Question:
Skor Co. leased equipment to Douglas Corp. on January 2, 2021 for a 7-year period expiring December 31, 2027. Equal payments under the lease are $600,000 and are due on January 2 of each year. The first payment was made on January 2, 2021. The cost of the equipment is $2,400,000. The lease is appropriately accounted for as a sales-type lease. The present value of the lease payments is $2,800,000.
What is the effect on Cost of Goods Sold for the year ended December 31, 2021?
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date: