Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on december 31, 2020, harris co. leased a machine

On December 31, 2020, Harris Co. leased a machine from Catt, Inc. for a five-year...

80.2K

Verified Solution

Question

Accounting

On December 31, 2020, Harris Co. leased a machine from Catt, Inc. for a five-year period. Equal annual payments under the lease are $600,000 and are due on December 31 of each year, starting on December 31, 2020. The five lease payments are discounted at 10% over the lease term (the appropriate PV of annuity due factor is 4.16986). The lease is appropriately accounted for as a finance lease by Harris. In its December 31, 2020 balance sheet, Harris should report a lease liability of (rounded to nearest $1):

Hint: remember how the first payment is treated with regard to allocation between interest and liability reduction.

Group of answer choices

$1,901,916

$2,501,916

$1,997,012

$2,627,012

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

calculate the pH of the following aqueous solution at 25 degreesCelsius and .35M NaF (pKa for...

Chemistry
Q

Write down Maxwell's equation in three different unit systems. (SI, Gaussian, Heaviside)

Physics
Q

Brooke is moving out of her parents’ house into her first apartment. While packing she realizes...

Basic Math
Q

the epidural space the subdural space the subarachnoid space Question 26 1 point What is...

Biology
Q

A tank is filled upto a height n placed on a platform of height h...

Physics
Q

Next Problem 1 point Consider the function X f x 8x 5 a Find the...

Basic Math
Q

5 sin x 1 2cosx dx

Calculus
Q

1. Table 1 indicates that Firm Ms net contribution is the lowest in the industry....

Accounting
Q

The December 31, 2024, adjusted trial balance for Badger Corporation is presented below. Required: 1....

Accounting
Q

Case 2: There had been a group discussion on various aspects related to accounting standards...

Accounting
Q

Big Bend Oil Company sold 100 barrels of oil to Roadrunner Refinery Corp. at the...

Accounting
Q

Free cash flow valuation You are evaluating the potential purchase of a small business with...

Finance