Consider a 5-year Capital Lease with a guaranteed residual value with an economic life span of 6 years. Interest implicit is at 9.5% with a fair value of $92, 000 and a minimum lease payment of $88,000. Required: a) Show the initial accounting. b) Subsequent accounting. c) The lease amortization schedule.

Consider a 5-year Capital Lease with a guaranteed residual value with an economic life span of 6 years. Interest implicit is at 9.5% with a fair value of $92, 000 and a minimum lease payment of $88,000. Required: a) Show the initial accounting. b) Subsequent accounting. c) The lease amortization schedule.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 1P

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