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Rashid [163]
3 years ago
15

On January 1, Garcia Supply leased a truck for a four-year period, at which time possession of the truck will revert back to the

lessor. Annual lease payments are $10,000 due on December 31 of each year, calculated by the lessor using a 5% discount rate. Negotiations led to Garcia guaranteeing a $36,000 residual value at the end of the lease term. Garcia estimates that the residual value after four years will be $35,000. What is the amount to be added to the right-of-use asset and lease liability under the residual value guarantee
Business
1 answer:
Arlecino [84]3 years ago
3 0

Answer:

Following are the response to the given choice.

Explanation:

A residual value guaranteed                                 36000

Less: Residual value expected                              35000

Difference                                                                   1000                

5%, 5 periods PV Factor                                         0.7835

PV of the amount added                                          $784

Added Amount =                                                        $784

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What is the primary purpose of a mission statement
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