Question 5 (1 point) On January 1, 2018, DuMont Industries signed an 18 year lease...
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Question 5 (1 point) On January 1, 2018, DuMont Industries signed an 18 year lease for heavy equipment. The lease is accounted for by DuMont as a finance lease. The lease required annual payments of $19,000 beginning December 31, 2018. The heavy equipment has an estimated useful life of 20 years, with $2,000 residual value. Cambridge uses straight-line depreciation for all its plant assets. The lease payments have a present value of $159,000, based on a10% interest rate. How much interest expense should DuMont report for the lease on its 2018 income statement? O a OD e Od $15.900 $19,000 NONE 51.900 Next Page Once you dick Next Page you will not be able to change your answer Time left for this assessment 113:05
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