On January 1, 2021, Sweetwater Furniture Company leased office space under a 21-year operating lease agreement. The contract calls for annual lease payments on December 31 of each year. The payments are $24,250 the first year and increase by $475 per year. Benefits expected from using the office space are expected to remain constant over the lease term. Required: COMPUTE Sweetwater's lease payment at December 31, 2025 (the fifth lease payment), and December 31, 2035 (the fifteenth lease payment). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) A)compute Sweetwater's lease payment at December 31, 2025 (the fifth lease payment). B)compute Sweetwater's lease payment at December 31, 2035 (the fifteenth lease payment).
On January 1, 2021, Sweetwater Furniture Company leased office space under a 21-year operating lease agreement. The contract calls for annual lease payments on December 31 of each year. The payments are $24,250 the first year and increase by $475 per year. Benefits expected from using the office space are expected to remain constant over the lease term.
Required:
COMPUTE Sweetwater's lease payment at December 31, 2025 (the fifth lease payment), and December 31, 2035 (the fifteenth lease payment). (If no entry is required for a transaction/event, select "No
A)compute Sweetwater's lease payment at December 31, 2025 (the fifth lease payment).
B)compute Sweetwater's lease payment at December 31, 2035 (the fifteenth lease payment).
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