Business, 13.05.2021 19:00 Daisy254

On January 2, 2021, Blossom, Inc. signed a 10-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $170000 starting at the beginning of the first year, with title passing to Blossom at the expiration of the lease. Blossom treated this transaction as a finance lease. The drill press has an estimated useful life of 15 years, with no salvage value. Blossom uses straight-line depreciation for all of its plant assets. Aggregate lease payments were determined to have a present value of $1091002, based on implicit interest of 9%. Required:
What amount of amortization expense should be recorded for 2021?

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On January 2, 2021, Blossom, Inc. signed a 10-year noncancelable lease for a heavy duty drill press....

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