Answer questions 22-23 from the following information. On January 1, Lessee leases equipment with a...
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Accounting
Answer questions 22-23 from the following information.
On January 1, Lessee leases equipment with a useful life of 5 years for a three-year lease term. Payments of $35,000 are due at the beginning of each year. The incremental borrowing rate is 6%. The present value of the payments is $98,000.
What is lease expense for the first year?
What is the amortization of the ROU asset for the first year?
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