Werner Chemical, Incorporated, leased a protein analyzer on September The fiveyear lease agreement calls for Werner to make quarterly lease payments of $ payable each September December March and June with the first payment on September Werner's incremental borrowing rate is Amortization is recorded on a straightline basis at the end of each fiscal year. The useful life of the equipment is five years.
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
a Determine the present value of the lease payments on September
b What pretax amounts related to the lease would Werner report in its balance sheet on December
c What pretax amounts related to the lease would Werner report in its income statement for the year ended December
d What pretax amounts related to the lease would Werner report in its statement of cash flows for the year ended December
e What pretax amounts related to the lease would Werner report in its statement of cash flows for the year ended December round to the nearest whole dollar.
