Determine the amount of interest expense from the lease, Accounting Basics

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Determine the amount of interest expense from the lease

Hurt Corporation acquired a capital lease that is carried on its books at a present value of $100,000 (discounted at 12%). Its' annual lease payment is $15,000. What is the amount of interest expense from this lease?

First Year Second Year

A) 12,000 10,200

B) 12,000 11,640

C) 12,000 12,350

D) 15,000 15,000

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Accounting Basics: Determine the amount of interest expense from the lease

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Accounting Basics: Determine the amount of interest expense from the lease

Reference No:- TGS095197

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

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Accounting Basics: Determine the amount of interest expense from the lease

Reference No:- TGS095197

Recent Questions Asked Accounting Basics

Q : Capitalization of certain expenditures as intangible assets

Q : Write-down the value of assets

Q : Full year of depreciation expense in the year

Q : Pension asset-liability on a company books

Q : Determine the amount of interest expense from the lease

Q : Deviations in accounting information

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Q : Direct labor cost and manufacturing overhead

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