Lessee Company enters into a lease on January 1, 2024, that is accounted for as a finance lease. The lease callsfor quarterly payments of $20,000, beginning on January 1, 2024, and continuing for 5 years. The last paymentis due on October 1, 2028. The lease has an implicit annual interest rate of 10%. The present value of an annuitydue at 10% per period for 5 periods is 4.170; the present value of an annuity due at 2.50% per period for 20periods is 15.979. What amount will Lessee report as a lease payable (not including accrued interest) in itsbalance sheet on December 31, 2024?Multiple Choice$416,987$261,102$319,580$247,630$416,987

The amount of lease liabilities is calculated by discounting future lease payments to present value…

Lessee Company enters into a lease on January 1, 2024, that is accounted for as a finance lease. The for quarterly payments of $20,000, beginning on January 1, 2024, and continuing for 5 years. The last is due on October 1, 2028. The lease has an implicit annual interest rate of 10%. The present value of a due at 10% per period for 5 periods is 4.170; the present value of an annuity due at 2.50% per period fo periods is 15.979. What amount will Lessee report as a lease payable (not including accrued interest) in balance sheet on December 31, 2024?

Lessee Company enters into a lease on January 1, 2024, that is accounted for as a finance lease. The for quarterly payments of $20,000, beginning on January 1, 2024, and continuing for 5 years. The last is due on October 1, 2028. The lease has an implicit annual interest rate of 10%. The present value of a due at 10% per period for 5 periods is 4.170; the present value of an annuity due at 2.50% per period fo periods is 15.979. What amount will Lessee report as a lease payable (not including accrued interest) in balance sheet on December 31, 2024?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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