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Business, 28.06.2019 04:10 yuki430p7szcq

Karla salons leased equipment from smith co. on july 1, 2018, in a finance lease. the present value of the lease payments discounted at 10% was $80,000. ten annual lease payments of $12,000 are due each year beginning july 1, 2018. smith co. had constructed the equipment recently for $66,000, and its retail fair value was $80,000. the total decrease in earnings (pretax) in karla's december 31, 2018, income statement would be (ignore taxes):
$12,000
$4,000
$3,400
$5,000

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Karla salons leased equipment from smith co. on july 1, 2018, in a finance lease. the present value...
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