On Jan 2, 2020 Albert Aloysius Zander Equipment, Inc. (AAZEQ) and Mole Excavating (MOLEX) entered...
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On Jan 2, 2020 Albert Aloysius Zander Equipment, Inc. (AAZEQ) and Mole Excavating (MOLEX) entered into a four-year lease contract for an IVAN-84D, which AAZEQ also offered for sale at $200,000. AAZEQ estimated that each machine could either be refurbished at the end of the lease or scrapped for parts, and that the Residual value of the equipment would thus be $38,000. The economic life of the asset was seven years. MOLEX incurred $6,400 in related direct costs for the lease. The lease required payments at the end of each year, commencing Dec 31, 2020. AAZEQ used a 4.6% discount rate and MOLEXs IBR was 7.2%. What was MOLEX 2020 interest expense? [2 Points]
What was MOLEX 2021 rent expense? [3 points]
What was the fye 2022 MOLEX ROU? [3 points]
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