What amount should harrow report as interest expense

Assignment Help Financial Accounting

Reference no: EM132806548

Problem 1: On January 1, 20X1, Harrow Co. as lessee signed a five-year noncancelable equipment lease with annual payments of $100,000 beginning December 31, 20X1. Harrow treated this transaction as a finance lease. The five lease payments have a present value of $379,000 at January 1, 20X1, based on interest of 10%. What amount should Harrow report as interest expense for the year ended December 31, 20X1?

A. $37,900

B. $27,900

C. $24,200

D. $0

Reference no: EM132806548

Questions Cloud

What rent revenue should be reported as : Klum has made timely payments each month, but prepaid January's rent on December 20. In Metro's 20X0 income statement, rent revenue should be reported as

What the accrued rent receivable should be reported as : All payments were made when due. In Marr's June 30, 20X11, balance sheet, the accrued rent receivable should be reported as

What amount should eber report as amortization of the lease : The equipment reverts to the lessor at the end of the lease. What amount should Eber report as amortization of the lease at December 31, year 1?

Describe strategic management process : Describe the strategic management process, and include how it is used by organizations. Your response should be at least 75 words in length.

What amount should harrow report as interest expense : Harrow Co. as lessee signed a five-year. What amount should Harrow report as interest expense for the year ended December 31, 20X1?

What red co should report a lease liability of : The lease is appropriately accounted for as a finance lease by Red Co. In its December 31, 20X5 balance sheet, Red Co. should report a lease liability of

Analyze the issue using the economic concepts and theory : Select a SINGLE news article on a global economic or financial topic from MSMBC, NPR, the Wall Street Journal, the New York Times or the Economist.

Advise the liquidator about the circumstances and nature : Hannah and Guy are the only directors and members. Advise the liquidator about the circumstances, nature, timeframe and defences,

Describe control system used by your current organization : Describe one control system used by your current organization or a previous employer. Identify the organization's control system type.

User Account

All Pages