Lessee Company enters into a lease on January 1, 2021, that is accounted for as a finance lease. The lease calls for quarterly payments of $20,000, beginning on January 1, 2021, and continuing for 5 years. The last payment is due on October 1, 2025. The lease has an implicit annual interest rate of 11%. The present value of an annuity due at 11% per period for 5 periods is 4.102; the present value of an annuity due at 2.75% per period for 20 periods is 15.646. What amount will Lessee report as lease payable (not including accrued interest) in its financial statements dated December 31, 2021? Choices are 312920 410245 243134 256091

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Lessee Company enters into a
lease on January 1, 2021, that is
accounted for as a finance lease.
The lease calls for quarterly
payments
of $20,000, beginning
on January 1, 2021, and
continuing for 5 years. The last
payment is due on October 1,
2025. The lease has an implicit
annual interest rate of 11%. The
present value of an annuity due at
11% per period for 5 periods is
4.102; the present value of an
annuity due at 2.75% per period
for 20 periods is 15.646. What
amount will Lessee report as a
lease payable (not including
accrued interest) in its financial
statements dated December 31,
2021?
Choices are
312920
410245
243134
256091
Transcribed Image Text:Lessee Company enters into a lease on January 1, 2021, that is accounted for as a finance lease. The lease calls for quarterly payments of $20,000, beginning on January 1, 2021, and continuing for 5 years. The last payment is due on October 1, 2025. The lease has an implicit annual interest rate of 11%. The present value of an annuity due at 11% per period for 5 periods is 4.102; the present value of an annuity due at 2.75% per period for 20 periods is 15.646. What amount will Lessee report as a lease payable (not including accrued interest) in its financial statements dated December 31, 2021? Choices are 312920 410245 243134 256091
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