FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Reardon Company leased an asset from Mackinac Company. Data:
●
●
●
●
.
Five-year, noncancellable lease begins 1/1/22. Asset life is five years
Payments of $20,711 each January 1.
Asset FMV $100,000; Lessor book value $85,000
Guaranteed salvage value $5,000; $1,500 salvage value expected by lessee
Applicable rate is 4%
Reardon's 12/31/22 Right of Use asset balance will be approximately
Select one:
O a. $79,259
O b. $78,923
O c. $76,712
O d. $79,013
Oe. $76,137
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Transcribed Image Text:Reardon Company leased an asset from Mackinac Company. Data: ● ● ● ● . Five-year, noncancellable lease begins 1/1/22. Asset life is five years Payments of $20,711 each January 1. Asset FMV $100,000; Lessor book value $85,000 Guaranteed salvage value $5,000; $1,500 salvage value expected by lessee Applicable rate is 4% Reardon's 12/31/22 Right of Use asset balance will be approximately Select one: O a. $79,259 O b. $78,923 O c. $76,712 O d. $79,013 Oe. $76,137
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