Accounting on Jan 1 2019 ABC Company leased copiers from DEF Company for a 7- year period ending on December 31, 2025. At the time of the lease agreement, the fair value of the copiers was $450,000. The lease requires 7 annual payments of $80,000 on December 31 each year. The first payment was made at the inception of the lease on January 1, 2019. The lease requires a guaranteed residual value of $110,000. On January 1, 2019, the expected residual value was $150,000 and the useful life of the copiers was 12 years. The lease included a 10% discount rate. Use excel and PV tables. show excel formulas Date Payment Effective Decrease in Outstanding Interest Balance Balance

Accounting on Jan 1 2019 ABC Company leased copiers from DEF Company for a 7- year period ending on December 31, 2025. At the time of the lease agreement, the fair value of the copiers was $450,000. The lease requires 7 annual payments of $80,000 on December 31 each year. The first payment was made at the inception of the lease on January 1, 2019. The lease requires a guaranteed residual value of $110,000. On January 1, 2019, the expected residual value was $150,000 and the useful life of the copiers was 12 years. The lease included a 10% discount rate. Use excel and PV tables. show excel formulas Date Payment Effective Decrease in Outstanding Interest Balance Balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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