Refer to the following ease amortization schedule The 10 payments are made annually starting with the beginning of the lease Tide does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economice of 12 years. The lease is no cancelable Outstanding Decrease in balance Balance 45,370 55,370 Payment 1 2 4 5 6 7 4 9 10 Cash 10,000 10,000 10,000 10,000 10.000 10,000 10,000 10,000 10,000 Effective Interest · 4,091 1,001 5,163 4,054 4,005 3,413 2,000 7 > 10,000 3.909 4,339 4,017 5.935 6,587 7,312 7 7 11,461 47,122 42.305 36,959 31.024 24,437 17,125 7 What is the outstanding balance after payment Sound your answer to the nearest whole doller)
Refer to the following ease amortization schedule The 10 payments are made annually starting with the beginning of the lease Tide does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economice of 12 years. The lease is no cancelable Outstanding Decrease in balance Balance 45,370 55,370 Payment 1 2 4 5 6 7 4 9 10 Cash 10,000 10,000 10,000 10,000 10.000 10,000 10,000 10,000 10,000 Effective Interest · 4,091 1,001 5,163 4,054 4,005 3,413 2,000 7 > 10,000 3.909 4,339 4,017 5.935 6,587 7,312 7 7 11,461 47,122 42.305 36,959 31.024 24,437 17,125 7 What is the outstanding balance after payment Sound your answer to the nearest whole doller)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Ashvin
Transcribed Image Text:Refer to the following lease amortization schedule. The 10 payments are made annually starting with the beginning of the lease. Title does not transfer to the lessee and there is no purchase option or guaranteed residual value. The asset has an expected economic life of 12 years. The lease is noncancelable.
Decrease
in balance.
Outstanding
Balance
65,370
55,370
Payment
1
2
3
4
5
6
7
8
9
10
Cash
Payment
10,000
10,000
10,000
10,000
10,000
OOOO
10,000
10,000
10,000
10,000
10,000
Multiple Choice
$5,000
$13,584
$5,587,
Effective
Interest
$9,009
0
6,091
5,661
5,183
4,654
4,065
3,413
2,688
?
?
10,000
3,909
4,339
4,817
5,346
5,935
What is the outstanding balance after payment 9? (Round your answer to the nearest whole coller.)
6,587
7,312
?
P
51,461
47,122
42,305
36,959
31,024
24,437
17,125
?
>
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