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What are the financial statement effects at the inception

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Reference no: EM133170057

Question - In 2021 a firm signed an operating lease for 10 years with annual payments of $6,000 to be remitted at the end of each year. The interest rate is 5%.

Required -

a. What are the financial statement effects at the inception of the lease (you can round to the dollar - show your work in terms of inputs)?

b. By how much would the Assets of the firm go up at inception if this lease was signed in 2010, under the old rules?

Reference no: EM133170057

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