Amortize the Lease Liability for Ragnar

Reference no: EM132749651

Question - Ragnar Company leased a machine from Lagatha Leasing Company. The lease is for 4 years. The li nning of the year, beginning on January 1, 2019. The lease is non-cancelable. Ragnar's incremental borrowing rate is 8%. Lagatha's earnings rate is 6%, but Ragnar does not know Lagatha's rate. There is an unguaranteed residual value of $10,000 at the end of year 4. The returned equipment was worth $7,500. Amortize the Lease Liability for Ragnar?

Reference no: EM132749651

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