The following lease information was obtained by a staff auditor for a client, Kroller Inc., at December
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Leased building; minimum lease payments per year; 10 years remaining life on December 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45,000
Executory costs per year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
Capitalized lease value, 12% interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343,269
Accumulated amortization of leased building at December 31, 2011 . . . . . . . 114,423
Amortization expense for 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,885
Obligations under capital leases; balance at December 31, 2011 . . . . . . . . . . 239,770
Obligations under capital leases; balance at December 31, 2010 . . . . . . . . . . 254,259
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Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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