cisco leased equipment from Julio on December 31, 2021. The lease is a 10-year lease with annual payments of $150,000 due on December 31 of each year beginning December 31, 2021. The present value of the lease payments is $1,013,854. Francisco's incremental borrowing rate is 12% for this type of lease. The implicit rate of 10% is known by the lessee. What should be the balance in Francisco lease liability at December 31, 2022? A. $800,239. B. $824,400. C. $863,854. D. $792,000.

cisco leased equipment from Julio on December 31, 2021. The lease is a 10-year lease with annual payments of $150,000 due on December 31 of each year beginning December 31, 2021. The present value of the lease payments is $1,013,854. Francisco's incremental borrowing rate is 12% for this type of lease. The implicit rate of 10% is known by the lessee. What should be the balance in Francisco lease liability at December 31, 2022? A. $800,239. B. $824,400. C. $863,854. D. $792,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 9RE: Use the information in RE20-3. Prepare the journal entries that Richie Company (the lessor) would...

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