An operating lease has unequal payments over the lease term. During the first year, the...
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Accounting
An operating lease has unequal payments over the lease term. During the first year, the payment is $14,000; total payments over the five-year lease term are $120,000. Based on the present value of the total lease payments and the implicit interest rate, interest expense incurred during the first year is $6,000. Amortization of the right-to-use asset for year 1 should be:
Multiple Choice
$24,000
$0
$20,000
$8,000
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