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Calculate the amount of depreciation expense for the year

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Question - Leased Assets - Koffman and Sons signed a four-year lease for a forklift on January 1, 2017. Annual lease payments of $1,438, based on an interest rate of 8%, are to be made every December 31, beginning with December 31, 2017. PV of Annuity of $1.

Explain why the value of the leased asset is not recorded at $5,752 ($1,438 x 4). The leased asset should be reported at the present value of the payments which is FILL IN TH BLANK not at FILL IN THE BLANK

Calculate the amount of depreciation expense for the year 2017.

At what amount would the lease obligation be presented on the balance sheet as of December 31, 2017?

Reference no: EM133123732

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