ease term, on January 1, 2022, they were well paying $10,000 annually every January 1 for the next 7. The present value of the 8 lease payments on January 1, 2022 with a rate of 8% was $62,000. How much is the interest expense of the lease in the year 2022?
ease term, on January 1, 2022, they were well paying $10,000 annually every January 1 for the next 7. The present value of the 8 lease payments on January 1, 2022 with a rate of 8% was $62,000. How much is the interest expense of the lease in the year 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Xennes Corp rented a piece of equipment for the 8 years of its useful life, agreeing to pay 10,000 at the beginning of the lease term, on January 1, 2022, they were well paying $10,000 annually every January 1 for the next 7. The present value of the 8 lease payments on January 1, 2022 with a rate of 8% was $62,000. How much is the interest expense of the lease in the year 2022?
A) 5,200
B) 4,160
C) 6,200
D)4,960
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