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.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter20: Accounting For Leases
Section: Chapter Questions
Problem 10GI: Owens Company leased equipment for 4 years at 50,000 a year with an option to renew the lease for 6...
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