Solved: What is the effect of the lease on earnings, Financial Accounting

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What is the effect of the lease on earnings

Short-term lease

Response to the following problem:

King Cones leased ice cream-making equipment from Ace Leasing. Ace earns interest under such arrangements at a 6% annual rate. The lease term is eight months with monthly payments of $10,000 due at the end of each month. King Cones elected the short-term lease option. What is the effect of the lease on King Cones' earnings during the eight-month term (ignore taxes)?

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Financial Accounting: What is the effect of the lease on earnings

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