On January 1, 2020, Tenin company leases a machine through a contract that requires 5 payments of $10,000 on the 1st of each January, beginning on that day. The present value of the payments discounted at 10% is 42,000. The classification of the lease is operational. How much should Tenin company recognize as expense for the year 2020? $10,000 $5,800 $4,200 $3,200
On January 1, 2020, Tenin company leases a machine through a contract that requires 5 payments of $10,000 on the 1st of each January, beginning on that day. The present value of the payments discounted at 10% is 42,000. The classification of the lease is operational. How much should Tenin company recognize as expense for the year 2020? $10,000 $5,800 $4,200 $3,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Tenin company leases a machine through a contract that requires 5 payments of $10,000 on the 1st of each January, beginning on that day. The present value of the payments discounted at 10% is 42,000. The classification of the lease is operational. How much should Tenin company recognize as expense for the year 2020?
$10,000
$5,800
$4,200
$3,200
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