Karla Salons leased equipment from Smith Co. on July 1, 2021, In a finance lease....
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Karla Salons leased equipment from Smith Co. on July 1, 2021, In a finance lease. The present value of the lease payments discounted at 11% was $78,400. Ten annual lease payments of $12,000 ure due each year beginning July 1, 2021. Smith Co. had constructed the equipment recently for $70,000, and its retall fair value was $78,400. What amount did Smith Co. record in its income statement for the reporting year ending December 31, 2021. In connection with the lease? (gnore taxes.) Multiple Choice $8,400 0 $3,652
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