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. Payment Cash 1 2 3 4 5 6 7 8 9 10 Effective Decrease Outstanding Balance in balance. $14,944. $5,500. $9,911. Payment Interest 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 6,700 6,227 5,702 5,119 4,472 3,754 2,957 ? ? 11,000 4,300 4,773 5,298 5,881 6,528 7,246 8,043 ? ? 71,908 60,908 56,608 51,835 46,537 40,656 34,128 26,882 18,839 ? ? What is the outstanding balance after payment 9? (Round your answer to the nearest whole dollar.) Multiple Choice $6.146.
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. Payment Cash 1 2 3 4 5 6 7 8 9 10 Effective Decrease Outstanding Balance in balance. $14,944. $5,500. $9,911. Payment Interest 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 6,700 6,227 5,702 5,119 4,472 3,754 2,957 ? ? 11,000 4,300 4,773 5,298 5,881 6,528 7,246 8,043 ? ? 71,908 60,908 56,608 51,835 46,537 40,656 34,128 26,882 18,839 ? ? What is the outstanding balance after payment 9? (Round your answer to the nearest whole dollar.) Multiple Choice $6.146.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kk169.
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.
Outstanding Balance
Payment Cash
1
2
3
4
5
6
7
8
9
10
Effective Decrease
Payment Interest in balance
$14,944.
$5,500.
$9,911.
11,000
11,000
11,000
11,000
11,000
11,000
11,000
11,000
11,000
11,000
6,700
6,227
5,702
5,119
4,472
3,754
2,957
?
?
11,000
4,300
4,773
5,298
5,881
6,528
7,246
8,043
?
?
71,908
60,908
56,608
51,835
46,537
40,656
34,128
26,882
18,839
?
?
What is the outstanding balance after payment 9? (Round your answer to the nearest whole dollar.)
Multiple Choice
$6,146.
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