On January 1, Ramirez Supply leased a car for a four-year period, at which time possession of the car will revert back to the lessor. Annual lease payments are $10,100 due on December 31 of each year, calculated by the lessor using a 7% discount rate. Negotiations led to Ramirez guaranteeing the lessor a $30,300 residual value at the end of the lease term although Ramirez estimates that the residual value after four years will be $26,600. What is the amount to be added to the right-of-use asset and lease payable under the residual value guarantee? Note: Round your answer to the nearest whole dollar amount. The present value of $1: n = 4, i= 7% is 0.76290. The present value of an ordinary annuity of $1: n = 4, i = 7% is 3.38721. The present value of an annuity due of $1: n = 4, /= 7% is 3.62432. Multiple Choice O о O O $2,823 $1,421 $1,926 $1,618

On January 1, Ramirez Supply leased a car for a four-year period, at which time possession of the car will revert back to the lessor. Annual lease payments are $10,100 due on December 31 of each year, calculated by the lessor using a 7% discount rate. Negotiations led to Ramirez guaranteeing the lessor a $30,300 residual value at the end of the lease term although Ramirez estimates that the residual value after four years will be $26,600. What is the amount to be added to the right-of-use asset and lease payable under the residual value guarantee? Note: Round your answer to the nearest whole dollar amount. The present value of $1: n = 4, i= 7% is 0.76290. The present value of an ordinary annuity of $1: n = 4, i = 7% is 3.38721. The present value of an annuity due of $1: n = 4, /= 7% is 3.62432. Multiple Choice O о O O $2,823 $1,421 $1,926 $1,618

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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