Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. leewin brokerage enters into a lease agreement wit

Leewin Brokerage enters into a lease agreement with Bumble Motors to lease an automobile with...

70.2K

Verified Solution

Question

Accounting

image
Leewin Brokerage enters into a lease agreement with Bumble Motors to lease an automobile with a far value of S00.000 under a 5-vear lease on December 20. 2018. The lease commences on January 1, 2019. and Leewin will retum the automobile to Bumble on December 31. 2023 The automobile has an estimated usefl lfe of 7 years Leenin made a lease payment of S10 900 on December 20, 2018 In addition the lease agreement stipulates annual payments of $10.900, due on January 1 of 2019, 2020, 2021, 2022 and 2023 The implicit rate of the lease is 6% and is known by Leewin There is no purchase option, no lease incentives no residual value quarantees and no transfer of owmership Leewin incurs inial direct costs of $1.300 Assuming that this is classified as an operating lease how much interest expense is recorded in 2019? OA. $2920 OB $2 180 OC $2.266 O D. S0

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

A difference between amphibians and reptiles is that Oamphibians are invertebrates but reptiles are vertebrates...

Biology
1.2K views

5 Y linked traits are males a b C d expressed known as homozygous traits...

Physics
1.2K views

each of the circuits shown below each have the same resistance Which of the following...

Basic Math
1.2K views

Chapter 8 When tolerancing elongated holes no choose your answer choose your answer precedes the...

Calculus
1.2K views

5 A graphing calculator is recommended If a rock is thrown upward on the planet...

Algebra
1.2K views

Describe all least squares solutions of the equation Ax b A 110 110 101 101...

Accounting
1.2K views

The gaming market has traditionally been targeted at teenagers and young adults; however, the...

Accounting
1.2K views

Are there any recent changes (such as technology and other developments) that are relevant to...

Accounting
1.2K views

The Reserve Division of Missabe Corp has average invested assets of $100,000,000. Sales revenue of...

Accounting
1.2K views

On December 31, 2020, Green Bank enters into a debt restructuring agreement with Teal Mountain...

Accounting
1.2K views

Please fill the spots under dividends declared. Thank you! Reproduce the Preferred Shares, Common...

Accounting
1.2K views

On March 1, 2024, Everson Services issued a 2% long - term notes payable for...