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Home Q & A Board Other Fields Homework Help Business Accounting
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husne husne
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6 years ago
The following information relates to a lease contract:
Inception: 1/1/x1
Annual lease payments of $3,000 due each 12/31 beginning 12/31/x1
End of lease term: 1/1/x5
There are 4 lease payments in all
Useful life of asset at inception: 10 yrs
Expected residual value at 1/1/x5: $6,000
Lessee is given option to purchase asset at 1/1/x5 for $1,000
Using an interest rate of 10%, what is the present value of minimum lease payments for the lessee
at inception?
A) $10,193
B) $ 9,510
C) $10,419
D) $13,608
E) $13,000
Textbook 
Intermediate Accounting, Volume 2

Intermediate Accounting, Volume 2


Edition: 5th
Authors:
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ashleyr1819ashleyr1819
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6 years ago
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husne Author
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#2
6 years ago
Brilliant
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