Find the amount should dayden company report

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Reference no: EM132314895

Question

1. On January 1, Year 1, Dayden Company as lessee signed a five-year noncancelable equipment lease with annual payments of $100,000 beginning December 31, Year 1. Dayden Company treated this transaction as a capital lease. The five lease payments have a present value of $379,000 at January 1, Year 1, based on interest of 10%. Help find the amount should Dayden Company report as interest expense for the year ended December 31, Year 1? (Please show all work)

2. Help find the pension expense using the following amounts. (Please show all work)

Service Cost $506,000

Excess Amortization of Deferred Loss $125,000

Amortization of Prior Service Cost $17,000

Interest on Projected Benefit Obligation $987,000

Return on Plan Assets $422,000

Reference no: EM132314895

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