On january 1, 2017, Nolte Company leased a machine from Durdil, Inc. for a five- year period. Equal annual payments under the lease are $290,000 and are paid on the end of each year. The first payment was made on December 31, 2017. The five lease payments are discounted at 11% over the lease term. The present value of minimum lease payments at the inception of the lease was $1,251,000. The lease is appropriately accounted for as a finance lease by Nolte. In its December 31, 2017 statement the balance of lease liability would be:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
need help very fast , I only have 15 minutes I need the final answer only without explain
On january 1, 2017, Nolte Company leased a
machine from Durdil, Inc. for a five-
year period. Equal annual payments
under the lease are $290,000 and are
paid on the end of each year. The first
payment was made on December 31,
2017. The five lease payments are
discounted at 11% over the lease term.
The present value of minimum lease
payments at the inception of the lease
was $1,251,000. The lease is
appropriately accounted for as a
finance lease by Nolte.
In its December 31, 2017 statement the
balance of lease liability would be:
Transcribed Image Text:On january 1, 2017, Nolte Company leased a machine from Durdil, Inc. for a five- year period. Equal annual payments under the lease are $290,000 and are paid on the end of each year. The first payment was made on December 31, 2017. The five lease payments are discounted at 11% over the lease term. The present value of minimum lease payments at the inception of the lease was $1,251,000. The lease is appropriately accounted for as a finance lease by Nolte. In its December 31, 2017 statement the balance of lease liability would be:
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Managing Debt
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education