medium · Financial Accounting accounting-cycle-financial-statements
On January 1, a company enters into a 5-year operating lease for equipment with annual payments of 50,000 due at year-end. The company's incremental borrowing rate is 6%. The present value of the lease payments is210,618.
What is the total lease expense recognized on the Income Statement in Year 1?
- $12,637
- $42,124
- $54,761
- $50,000
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