What pretax amounts related to the leawe


Nutri Labs, Inc. leased a protein analyzer to Werner Chemical, Inc., on September 30, 2009. NutraLabs manufactured the machine at a cost of $5 million. The five-year lease agreement calls for Werner to make quarterly lease payments of $391, 548, payable each September 30, December 31, March 31, June 30, with the first payment at September 30, 2009. NutraLabs' implicit interest rate is 12%.Determine the price at which NutraLabs is "selling" the equipment (present value of the lease payments) at Septebmer30, 2009 (to the nearest $000).

  1. What pretax amounts related to the leawe would NutraLabs report in its balance sheet at December 31, 2009
  2. What pretax amoumts related to the lease would NutraLabs report in its income statement for the year ended December 31, 2009
  3. What pretas amounts related to the lease would NutraLabs report in its statement of cash flows for the year ended December 31, 2009

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Accounting Basics: What pretax amounts related to the leawe
Reference No:- TGS0706116

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