On June 1, 2024, First National leased a building. The lease agreement calls for First National to make lease payments of $3,627.06 each month for the next two years, with the first lease payment beginning June 30. The company's normal borrowing rate is 7%. Required: 1. Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.) 2. Record the lease on June 1, 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.) (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Present value of lease payments Required 2 >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On June 1, 2024, First National leased a building. The lease agreement calls for First National to make lease payments of $3,627.06
each month for the next two years, with the first lease payment beginning June 30. The company's normal borrowing rate is 79%.
Required:
1. Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.)
2. Record the lease on June 1, 2024.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.) (Do not round intermediate
calculations. Round your answer to the nearest whole dollar amount.)
Present value of lease payments
Required 1
Required 2 >
Transcribed Image Text:On June 1, 2024, First National leased a building. The lease agreement calls for First National to make lease payments of $3,627.06 each month for the next two years, with the first lease payment beginning June 30. The company's normal borrowing rate is 79%. Required: 1. Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.) 2. Record the lease on June 1, 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the present value of the lease payments. (Hint: Use a financial calculator or Excel.) (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Present value of lease payments Required 1 Required 2 >
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