Falls Financial Corp. 2020 annual report discloses the following lease payments:Capital OperatingFiscal yearleasesleases2021 $12,936 $2,281,440202210,584653,85620238,232478,632202492,904202536,456Net minimum lease payments$31,752 $3,543,2885,800Less amount representing interestPresent value of lease obligations $25,952What is the approximate implicit rate of return on the capital leases?Select one:а. 9.1%b. 11.7%с. 10.2% хd. 18.3%eenics sas7bdat

A lease is an agreement between two parties pertaining to the temporary use of an asset. The person…

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What is the approximate implicit rate of return on the capital leases? Select one: а. 9.1% b. 11.7% с. 10.2% х d. 18.3%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Falls Financial Corp. 2020 annual report discloses the following lease payments:
Capital Operating
Fiscal year
leases
leases
2021 $12,936 $2,281,440
2022
10,584
653,856
2023
8,232
478,632
2024
92,904
2025
36,456
Net minimum lease payments
$31,752 $3,543,288
5,800
Less amount representing interest
Present value of lease obligations $25,952
What is the approximate implicit rate of return on the capital leases?
Select one:
а. 9.1%
b. 11.7%
с. 10.2% х
d. 18.3%
eenics sas7bdat

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