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QUESTION 39   On January 1, 2020, ABC Company signed a three-year lease for the acquisition of equipment. Monthly lease payments of $2,000, based on an annual interest rate of 12% are to be made every January 1, beginning with January 1, 2020. Compute the present value of the minimum lease payments for ABC Company for the capital lease.  Following are appropriate factors from tables:      Table %   /  n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 12%/3 2.69005 2.40183 .07379  1%/36 30.40858 30.10751 .69892           $72,000     $60,215.02     $60,817.16     $71,512.41

QUESTION 39   On January 1, 2020, ABC Company signed a three-year lease for the acquisition of equipment. Monthly lease payments of $2,000, based on an annual interest rate of 12% are to be made every January 1, beginning with January 1, 2020. Compute the present value of the minimum lease payments for ABC Company for the capital lease.  Following are appropriate factors from tables:      Table %   /  n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 12%/3 2.69005 2.40183 .07379  1%/36 30.40858 30.10751 .69892           $72,000     $60,215.02     $60,817.16     $71,512.41

FINANCIAL ACCOUNTING
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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QUESTION 39

  1.  

    On January 1, 2020, ABC Company signed a three-year lease for the acquisition of equipment. Monthly lease payments of $2,000, based on an annual interest rate of 12% are to be made every January 1, beginning with January 1, 2020. Compute the present value of the minimum lease payments for ABC Company for the capital lease.  Following are appropriate factors from tables:

     

       Table

    %   /  n

    Present Value of annuity due $1

    Present Value of ordinary annuity of $1

    Present value of $1

    12%/3

    2.69005

    2.40183

    .07379

     1%/36

    30.40858

    30.10751

    .69892

     

     

     

       

    $72,000
       

    $60,215.02
       

    $60,817.16
       

    $71,512.41

     

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