At December 31, 2020, Bingo Industries has $778,500 in bonds payable (due in 2025), $128,000 in notes payable (due in 2028), and a $65,700 discount on bonds payable. Bingo is thinking about leasing equipment. The present value of the lease payments is $172,050. Of that amount, Bingo would pay 30% within the next 12 months, another 30% in the 12 months after that, and the remaining 40% in the 12 months after that. If Bingo proceeds with the lease, its total long-term liabilities will be Select answer from the options below: $840,800. $961,235. $1,012,850. $892,415.
At December 31, 2020, Bingo Industries has $778,500 in bonds payable (due in 2025), $128,000 in notes payable (due in 2028), and a $65,700 discount on bonds payable. Bingo is thinking about leasing equipment. The present value of the lease payments is $172,050. Of that amount, Bingo would pay 30% within the next 12 months, another 30% in the 12 months after that, and the remaining 40% in the 12 months after that. If Bingo proceeds with the lease, its total long-term liabilities will be Select answer from the options below: $840,800. $961,235. $1,012,850. $892,415.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject - account
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Transcribed Image Text:At December 31, 2020, Bingo
Industries has $778,500 in bonds
payable (due in 2025), $128,000 in
notes payable (due in 2028), and a
$65,700 discount on bonds
payable. Bingo is thinking about
leasing equipment. The present
value of the lease payments is
$172,050. Of that amount, Bingo
would pay 30% within the next 12
months, another 30% in the 12
months after that, and the
remaining 40% in the 12 months
after that. If Bingo proceeds with
the lease, its total long-term
liabilities will be Select answer
from the options below:
$840,800.
$961,235.
$1,012,850.
$892,415.
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