At the beginning of the year, Cazenovia, Inc. entered into a five-year lease for equipment that was valued at $95,000. The company will be required to make annual lease payments of $22,000 for 5 years at year-end. The implicit interest rate is 5% and the company classified the lease as a finance lease. What is the balance sheet value of the lease asset and the lease liability? Round answer to the nearest whole number. $ 95,248 How much is interest expense in the first year? What is the reduction in the lease liability in the first year? Round answers to the nearest whole number. Interest expense for first year s 4,762 Reduction of lease liability What is the total expense if straight-line amortization is used for the leased asset? Round answer to the nearest whole number.

At the beginning of the year, Cazenovia, Inc. entered into a five-year lease for equipment that was valued at $95,000. The company will be required to make annual lease payments of $22,000 for 5 years at year-end. The implicit interest rate is 5% and the company classified the lease as a finance lease. What is the balance sheet value of the lease asset and the lease liability? Round answer to the nearest whole number. $ 95,248 How much is interest expense in the first year? What is the reduction in the lease liability in the first year? Round answers to the nearest whole number. Interest expense for first year s 4,762 Reduction of lease liability What is the total expense if straight-line amortization is used for the leased asset? Round answer to the nearest whole number.

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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