Business, 24.08.2021 19:10 berlyntyler

The Harris Company is the lessee on a four-year lease with the following payments at the end of each year: Year 1: $11,000
Year 2: $16,000
Year 3: $21,000
Year 4: $26,000

An appropriate discount rate is 7 percentage, yielding a present value of $61,233.

a. If the lease is an operating lease, what will be the initial value of the right-of-use asset?
b. If the lease is an operating lease, what will be the initial value of the lease liability?
c. If the lease is an operating lease, what will be the lease expense shown on the income statement at the end of year 1?
d. If the lease is an operating lease, what will be the interest expense shown on the income statement at the end of year 1?

Answers: 2

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The Harris Company is the lessee on a four-year lease with the following payments at the end of each...

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