On December 31, 2023, SW Airlines leased a plane from FIY Company for a ten-yerr period expiring December 30, 2033. Equal annual payments of $637,500 are due on December 31 of each year, beginning with December 31, 2023. The lease is properly classified as a finantics lease on SW's books. The present value at December 31, 2023 of the ten lease payments over the lease term discounted at 9% is $4,459, 472. Assuming the payments are made on time, the amount that should be reported by SW Airlines as the lease liability on its December 31, 2024 balance sheet latter the payment was made) is (rounded): $4, 223, 324 $3.477,994 $ 3,528.49 $3.821,972

On December 31, 2023, SW Airlines leased a plane from FIY Company for a ten-yerr period expiring December 30, 2033. Equal annual payments of $637,500 are due on December 31 of each year, beginning with December 31, 2023. The lease is properly classified as a finantics lease on SW's books. The present value at December 31, 2023 of the ten lease payments over the lease term discounted at 9% is $4,459, 472. Assuming the payments are made on time, the amount that should be reported by SW Airlines as the lease liability on its December 31, 2024 balance sheet latter the payment was made) is (rounded): $4, 223, 324 $3.477,994 $ 3,528.49 $3.821,972

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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