Barclay Company leased equipment with a fair value of $105,000 from Barry Lease Corp on December 31, 2024 over a 6-year lease. Lease paymens of $20,000 are due at the beginning of each lease period beginning December 31, 2024. Barclay's incremental borrowing rate is 11% and is aware that Barry's implicit rate in the lease is 10%. The following present value factors are provided: \table[[PV of an annuily due for 6 periods at 11%, 4.6959], [PV of an annuily due for 6 periods at 10%, 4.7908]] On December 31, 2024, what is the balance in the Lease Liability account? A $95, 816 B. $75, 816 c. $85,000 D. $ 93918
Barclay Company leased equipment with a fair value of $105,000 from Barry Lease Corp on December 31, 2024 over a 6-year lease. Lease paymens of $20,000 are due at the beginning of each lease period beginning December 31, 2024. Barclay's incremental borrowing rate is 11% and is aware that Barry's implicit rate in the lease is 10%. The following present value factors are provided: \table[[PV of an annuily due for 6 periods at 11%, 4.6959], [PV of an annuily due for 6 periods at 10%, 4.7908]] On December 31, 2024, what is the balance in the Lease Liability account? A $95, 816 B. $75, 816 c. $85,000 D. $ 93918
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Barclay Company leased equipment with a fair value of $105,000 from Barry Lease Corp on
December 31, 2024 over a 6-year lease. Lease paymens of $20,000 are due at the
beginning of each lease period beginning December 31, 2024. Barclay's incremental
borrowing rate is 11% and is aware that Barry's implicit rate in the lease is 10%. The
following present value factors are provided: \table[[PV of an annuily due for 6 periods at
11%, 4.6959], [PV of an annuily due for 6 periods at 10%, 4.7908]] On December 31, 2024,
what is the balance in the Lease Liability account? A $95, 816 B. $75, 816 c. $85,000 D. $
93918](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2454042-cae1-4cac-b0f5-b75a14496c64%2F3defaf2b-470e-41ec-aa55-19c632c214cc%2Fjr16lls_processed.png&w=3840&q=75)
Transcribed Image Text:Barclay Company leased equipment with a fair value of $105,000 from Barry Lease Corp on
December 31, 2024 over a 6-year lease. Lease paymens of $20,000 are due at the
beginning of each lease period beginning December 31, 2024. Barclay's incremental
borrowing rate is 11% and is aware that Barry's implicit rate in the lease is 10%. The
following present value factors are provided: \table[[PV of an annuily due for 6 periods at
11%, 4.6959], [PV of an annuily due for 6 periods at 10%, 4.7908]] On December 31, 2024,
what is the balance in the Lease Liability account? A $95, 816 B. $75, 816 c. $85,000 D. $
93918
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