Cullumber Company leased equipment from Ayayai Company on July 1, 2025, for an eight-year period expiring June 30, 2033. One of the lease terms is a guaranteed residual amount of $13200. The residual expected by Cullumber will be $8100. The lease meets the criteria of a finance lease. What is the residual value amount that would be included in the calculation of Cullumber's lease liability/right- of use asset? The present value of $8100. The present value of $13200. The present value of $5100. The residual would not be included in the calculation of the lease liability/right-of-use asset.

Cullumber Company leased equipment from Ayayai Company on July 1, 2025, for an eight-year period expiring June 30, 2033. One of the lease terms is a guaranteed residual amount of $13200. The residual expected by Cullumber will be $8100. The lease meets the criteria of a finance lease. What is the residual value amount that would be included in the calculation of Cullumber's lease liability/right- of use asset? The present value of $8100. The present value of $13200. The present value of $5100. The residual would not be included in the calculation of the lease liability/right-of-use asset.

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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