Determine the price at which nutral


NutraLabs, Inc., leased a protein analyzer to Werner Chemical, Inc., on September 30, 2011. NutraLabs manufactured the machine at a cost of $5.9 million. The five-year lease agreement calls for Werner to make quarterly lease payments of $431,820, payable each September 30, December 31, March 31, June 30, with the first payment at September 30, 2011. NutraLabs' implicit interest rate is 10%.

Required:

(1) Determine the price at which NutraLabs is "selling" the equipment at September 30, 2011.

 

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Accounting Basics: Determine the price at which nutral
Reference No:- TGS0681418

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