On January 2,2025, Cullumber, Inc. signed a ten-year noncancelable lease for a heavy duty drill...
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On January Cullumber, Inc. signed a tenyear noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $ starting at the beginning of the first year, with the title passing to Cullumber at the expiration of the lease. Cullumber treated this transaction as a finance lease. The drill press has an estimated useful life of years, with no salvage value. Cullumber uses straightline amortization for all of its plant assets. Aggregate lease payments were determined to have a present value of $ based on an implicit interest of
In its income statement, what amount of amortization expense should Cullumber report from this lease transaction?
$
$
$
$
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