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What is the approximate implicit rate of return on the capital leases? Select one: а. 9.1% b. 11.7% с. 10.2% х d. 18.3%

What is the approximate implicit rate of return on the capital leases? Select one: а. 9.1% b. 11.7% с. 10.2% х d. 18.3%

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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Falls Financial Corp. 2020 annual report discloses the following lease payments: Capital Operating Fiscal year leases leases 2021 $12,936 $2,281,440 2022 10,584 653,856 2023 8,232 478,632 2024 92,904 2025 36,456 Net minimum lease payments $31,752 $3,543,288 5,800 Less amount representing interest Present value of lease obligations $25,952 What is the approximate implicit rate of return on the capital leases? Select one: а. 9.1% b. 11.7% с. 10.2% х d. 18.3% eenics sas7bdat
Transcribed Image Text:Falls Financial Corp. 2020 annual report discloses the following lease payments: Capital Operating Fiscal year leases leases 2021 $12,936 $2,281,440 2022 10,584 653,856 2023 8,232 478,632 2024 92,904 2025 36,456 Net minimum lease payments $31,752 $3,543,288 5,800 Less amount representing interest Present value of lease obligations $25,952 What is the approximate implicit rate of return on the capital leases? Select one: а. 9.1% b. 11.7% с. 10.2% х d. 18.3% eenics sas7bdat
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