Sanborn, Inc, leased equipment from Chase Supply on December 31 . 2014 . The lease term is for the 10-year period expiring December 30, 2021 . The useful life of the leased asset is 1 . years. Equal annual payments under the lease are $100,000 due on December 31 of each year. The first payment was made on December 31 . 2014 . Sanborn's incremental borrowing rate was 12% at December 31 . 2014
Chase's implicit rate for the lease is 10% and is known by Sanborn. Sanborn appropriately accounts for the lease as a capital lease. What is the balance in Sanborn's "Liability Under Lease Agreements" account at December 31 . 2015?
a. $533,492
b. $545,010
c. $643,492
d. $800,000
A
Business
You might also like to view...
A__________sample is a sample in which every element in the population has a known statistical likelihood of being selected
Fill in the blanks with correct word.
Business
Typically, information systems use ________ to improve processes to limit the behavior of users
A) control B) automation C) bottlenecks D) logistics
Business