On January 1, 2012, Singhai Ltd. signed a three-year lease on a delivery truck. The lease requires annual payments of $29,103, which are due at the end of each year. Singhai's managers computed the present value of the lease payments as $75,000 using an effective interest rate of 8%. Singhai had to use capital lease accounting treatment for the truck. What was the total expense related to this lease during the fiscal year ended December 31, 2012? $31,000 $29,103 $25,000 $6,000 $0 NEXT >

On January 1, 2012, Singhai Ltd. signed a three-year lease on a delivery truck. The lease requires annual payments of $29,103, which are due at the end of each year. Singhai's managers computed the present value of the lease payments as $75,000 using an effective interest rate of 8%. Singhai had to use capital lease accounting treatment for the truck. What was the total expense related to this lease during the fiscal year ended December 31, 2012? $31,000 $29,103 $25,000 $6,000 $0 NEXT >

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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