On January 1 2016 Mark Company leased equipment by signing a five year lease....
ID: 2523536 • Letter: O
Question
On January 1 2016 Mark Company leased equipment by signing a five year lease..... 6. On January 1, 2016, Mark Company leased equipment by signing a five-year lease that required fiv payments of $85,000 due on December 31 of each year. The equipment remains the property of th lessor at the end of the lease, and Mark does not guarantee any residual value. Using a rate of 119 Mark capitalized the lease on January 1, 2016, in the amount of $314,152. What is the amount of the lease obligation on December 31, 2017? a. $263,709 b. $207,717 c. $279,599 d. $225,350 irement Plans- 7. Which of the following would not be a component of pension expense? a. prior service cost amortization b. interest cost c. deferred compensation d return on assetsExplanation / Answer
Lease Obligation as on December 31, 2017 is (b) 207,717
Lease Liability Opening Lease Rentals Interest Reduction of Lease Liability Closing Balance of Lease Liability 314,152 85,000 34,557 50,443 263,709 263,709 85,000 29,008 55,992 207,717 207,717 85,000 22,849 62,151 145,566 145,566 85,000 16,012 68,988 76,578 76,578 85,000 8,422 76,578 -Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.