View Policies Show Attempt History Current Attempt in Progress X Your answer is incorrect. Ivanhoe, Inc. leased equipment from Tower Company under a four-year lease requiring equal annual payments of $224152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. Ivanhoe, Inc's incremental borrowing rate is 11% and the rate implicit in the lease (which is known by Ivanhoe, Inc.) is 8%. Assuming that this lease is properly classified as a finance lease, what is the amount of interest expense recorded by Ivanhoe, Inc. in the first year of the asset's life? 8%, 4 periods 11%, 4 periods O $59394 - SO 0.0 $46213 $63595 PV Annuity Due 3.57710 4 3.44371 PV Ordinary Annuity 3.31213 3.10245

Warhoe, inc leased equloment from Tower Company under a touryzar lease requiring equal arinual payments of 5224152 , with the first payment due at lease inception. The lease does not tramfer ownership, nor is there a barcain purchase option. The equipment has a 4-year useful iffe and na salvage value Wanhoe Inc's incremental borrowingrate is 11k and the rate ingicit in the leage ixhich is known by lvanhoe inc. Is 8% Assumling that this lease is propenty classitied as a finance lease what is the arsount of interest opense recorded by Ivarihoe. Inc in the frist year of the asset's Itfe