ts) On January 1, 2023, KSN, Inc. signed a 7 year lease on an asset with a 10 year economic life. The lease doesn't transfer ownership or have a BPO. If the $337,095 lease payments had an initial present value of $2,104,193 and KSN, Inc.'s incremental interest rate is 4%, how much amortization expense will the company recognize on its 2023 income statement from this finance lease? & ^5) O $0 $210,419 O $337,095 O $300,599

ts) On January 1, 2023, KSN, Inc. signed a 7 year lease on an asset with a 10 year economic life. The lease doesn't transfer ownership or have a BPO. If the $337,095 lease payments had an initial present value of $2,104,193 and KSN, Inc.'s incremental interest rate is 4%, how much amortization expense will the company recognize on its 2023 income statement from this finance lease? & ^5) O $0 $210,419 O $337,095 O $300,599

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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33. Subject :- Accounting
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Beamish Incorporated, which produces a single product, has provided the following data for its most recent month of operations: Number of units produced Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense Multiple Choice There were no beginning or ending inventories. The absorption costing unit product cost was: $101 per unit $139 per unit $106 per unit 10,900 $ 51 $ 50 $223 per unit $5 $9 $359,700 $817,500
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Metlock Corporation recordeda right-of-use asset for $268,800 as a result of a finance lease on December 31, 2019. Metlock's incremental borrowing rate is 11%, and the implicit rate of the lessor was not known at the commencement of the lease. Metlock made the first lease payment of $51,390 on on December 31, 2019. The lease requires 7 annual payments. The equipment has a useful life of 7 years with no residual value. Prepare Metlock's December 31, 2020, entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 5,275.) Date Account Titles and Explanation Debit Credit December 31, 2020 (To record interest expense) December 31, 2020 (To record amortization of the right-of-use asset)
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