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Business, 19.05.2020 22:09 k123loveme

On December 31, 2021, Wildhorse, Inc. leased machinery with a fair value of $1,425,000 from Cey Rentals Co. The agreement is a 6-year noncancelable lease requiring annual payments of $270,000 beginning December 31, 2021. The lease is appropriately accounted for by Wildhorse as a finance lease. Wildhorse’s incremental borrowing rate is 11%. Wildhorse knows the interest rate implicit in the lease payments is 10%. The present value of an annuity due of 1 for 6 years at 10% is 4.7908. The present value of an annuity due of 1 for 6 years at 11% is 4.69590.In its December 31, 2021 balance sheet, Wildhorse should report a lease liability of:

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On December 31, 2021, Wildhorse, Inc. leased machinery with a fair value of $1,425,000 from Cey Rent...
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