016, Pearson Company signed a lease agreement requiring six annual payments of $60,000, beginning December 31, 2016. Pearson's incremental borrowing rate was 9% and the lessor's implicit rate, known by Pearson, was 10%. The present value factors of an ordinary annuity of $1 for six periods for interest rates of 9% and 10% are 4.48592 and 4.35526, respectively. 37. Refer to Exhibit 20-1. 18.What would be the balance of the lease obligation for financial reporting purposes on December 31, 2017, after the lease payment (round answers to the nearest dollar)? a- $194,383 b- $167,979 c- $190,192
016, Pearson Company signed a lease agreement requiring six annual payments of $60,000, beginning December 31, 2016. Pearson's incremental borrowing rate was 9% and the lessor's implicit rate, known by Pearson, was 10%. The present value factors of an ordinary annuity of $1 for six periods for interest rates of 9% and 10% are 4.48592 and 4.35526, respectively. 37. Refer to Exhibit 20-1. 18.What would be the balance of the lease obligation for financial reporting purposes on December 31, 2017, after the lease payment (round answers to the nearest dollar)? a- $194,383 b- $167,979 c- $190,192
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Exhibit 20-1
On January 1, 2016, Pearson Company signed a lease agreement requiring six annual payments of $60,000, beginning December 31, 2016. Pearson's incremental borrowing rate was 9% and the lessor's implicit rate, known by Pearson, was 10%. The
Refer to Exhibit 20-1.
18.What would be the balance of the lease obligation for financial reporting purposes on December 31, 2017, after the lease payment (round answers to the nearest dollar)?
a- $194,383
b- $167,979
c- $190,192
d- $233,379
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