Summer Salons leased equipment from Dillion Co. on July 1, 2022, in a finance lease....
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Summer Salons leased equipment from Dillion Co. on July 1, 2022, in a finance lease. The present value of the lease payments discounted at 9% was $104,929. Ten annual lease payments of $15,000 are due each year beginning July 1, 2022. The total decrease in earnings (pretax) in Summer's 2022, income statement would be (ignore taxes):
A $9,293.
B $9,748.
C $10,000.
D $10,138.
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