Sign In Sign Up Ask an AI advisor
joyelewis58
joyelewis58
23.09.2020 • 
Business

On December 31, 2017, Roe Company leased a machine from Colt for a five-year period. Equal annual payments under the lease are $105,000 (including $5,000 annual executory costs for servicing) and are due on December 31 of each year. The first payment was made on December 31, 2017, and the second payment was made on December 31, 2018. The five lease payments are discounted at 10% over the lease term. The present value of minimum lease payments at the beginning of the lease and before the first annual payment was $416,987. Roe appropriately accounts for the lease as a capital lease. Required: What is the lease liability that Roe should report in its December 31, 2018, balance sheet under ASC 840

Solved
Show answers

Ask an AI advisor a question

I want advice