Exercise 5-26(Algo) Lease payments; solve for unknown interest rate [LO5-9,5-10] On March 31,2024,...
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Accounting
Exercise Algo Lease payments; solve for unknown interest rate LO
On March Southwest Gas leased equipment from a supplier and agreed to pay $ annually for years beginning March Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Southwest recorded a $ lease liability.
Required:
Determine the interest rate implicit in the lease agreement.
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
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