Business, 06.08.2019 19:20 abelsoto

Wilson foods corporation leased a commercial food processor on september 30, 2016. the five-year lease agreement calls for wilson to make quarterly lease payments of $195,774, payable each september 30, december 31, march 31, june 30, with the first payment at september 30, 2016. wilson’sincremental borrowing rate is 12%. wilson records depreciation on a straight-line basis at the end of each fiscal year. wilson recorded the lease as follows: september 30, 2016asset (calculated below)3,000,000 lease payable (calculated below)3,000,000 lease payable195,774 cash (first payment)195,774 calculation of the present value of lease payments$195,774 × 15.32380* = $3,000,000 (rounded)*present value of an annuity due of $1: n = 20, i = 3%required: what would be the pretax amounts related to the lease that wilson would report in its statement of cash flows for the year ended december 31, 2016?

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Wilson foods corporation leased a commercial food processor on september 30, 2016. the five-year lea...

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