ease term, on January 1, 2022, they were well paying $10,000 annually every January 1 for the next 7. The present value of the 8 lease payments on January 1, 2022 with a rate of 8% was $62,000. How much is the interest expense of the lease in the year 2022?
ease term, on January 1, 2022, they were well paying $10,000 annually every January 1 for the next 7. The present value of the 8 lease payments on January 1, 2022 with a rate of 8% was $62,000. How much is the interest expense of the lease in the year 2022?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 10MC: On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring...
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Xennes Corp rented a piece of equipment for the 8 years of its useful life, agreeing to pay 10,000 at the beginning of the lease term, on January 1, 2022, they were well paying $10,000 annually every January 1 for the next 7. The present value of the 8 lease payments on January 1, 2022 with a rate of 8% was $62,000. How much is the interest expense of the lease in the year 2022?
A) 5,200
B) 4,160
C) 6,200
D)4,960
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