nts) Vontsira recently entered into an unguaranteed, 6 year, finance lease. The asset was recorded at $2,502,000 and has an economic life of 9 years. At the end of the lease term the asset will have a market value of $375,000. The estimated market value at the end of the asset's economic life is $150,000. At the end of the lease Vontsira will return the asset. How much depreciation expense should Vontsira record for the first year of the lease? (IFO 13) $354,500 O $261,333 O $417,000 O $278,000
nts) Vontsira recently entered into an unguaranteed, 6 year, finance lease. The asset was recorded at $2,502,000 and has an economic life of 9 years. At the end of the lease term the asset will have a market value of $375,000. The estimated market value at the end of the asset's economic life is $150,000. At the end of the lease Vontsira will return the asset. How much depreciation expense should Vontsira record for the first year of the lease? (IFO 13) $354,500 O $261,333 O $417,000 O $278,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:nts) Vontsira recently entered into an unguaranteed, 6 year, finance lease. The asset was recorded at
$2,502,000 and has an economic life of 9 years. At the end of the lease term the asset will have a market
value of $375,000. The estimated market value at the end of the asset's economic life is $150,000. At the
end of the lease Vontsira will return the asset. How much depreciation expense should Vontsira record for
the first year of the lease? (IFO 13)
$354,500
$261,333
O $417,000
$278,000
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