Solution-What would be the pretax amounts related to the

What would be the pretax amounts related to the lease

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Reference no: EM132970470

Wilson Foods Corporation leased a commercial food processor on September 30, 2021. The five-year finance lease agreement calls for Wilson to make quarterly lease payments of $274,083, payable each September 30, December 31, March 31, June 30, with the first payment at September 30, 2021. Wilson's incremental borrowing rate is 12%. Wilson records amortization on a straight-line basis at the end of each fiscal year.

Wilson recorded the lease as follows:

September 30, 2021

Right-of-use asset (calculated below) 4,200,000

Lease payable (calculated below) 4,200,000

Lease payable274,083

Cash (first payment) 274,083

Problem 1: What would be the pretax amounts related to the lease that Wilson would report in its statement of cash flows for the year ended December 31, 2021?

Reference no: EM132970470

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What would be the pretax amounts related to the lease

Reference no: EM132970470

Reference no: EM132970470

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