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Nitella [24]
3 years ago
10

Red Co. recorded a right-of-use asset of $100,000 in a 10-year finance lease. Payments of $16,275 are made annually at the end o

f each year. The interest rate charged by the lessor and known by Red was 10%. The balance in the lease payable after two years will be:
a) $80,000b) $116,309c) $86,823d) $121,000
Business
1 answer:
pychu [463]3 years ago
3 0

Answer:

c) $86,823

Explanation:

The balance in the lease payable after two years will be: $86,823

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