What will the lease expense shown on the income statement

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Question - If I have an operating lease that is cancelable and requires annual payment of $25,600 per year beginning on January 1 of the first year and the last payment will be on January 1 of year five what will the lease expense be that is shown on the income statement at the end of year one? Other information is the fair value of the equipment being leased as $175,000 the applicable discount rate is an 8% annual rate the economic life of the asset is 10 years and the asset is a standard piece of equipment I know that they'll be no Interest expense nor amortization expense shown on the income statement because it is an operating lease. What will the lease expense shown on the income statement at the end of the year me will it be 25,600?

Reference no: EM132860731

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