Exhibit 20-1 On January 1, 2016, Pearson Company signed a lease agreement requiring six annual payments of $60,000, beginning December 31, 2016. The lease qualifies as a capital lease. Pearson's incremental borrowing rate was 9% and the lessor's implicit rate, known by Pearson, was 10%. The present value factors of an ordinary annuity of $1 for six periods for interest rates of 9% and 10% are
4.48592 and 4.35526, respectively. ? Refer to Exhibit 20-1. What would be the balance of the lease obligation on January 1, 2017, for financial reporting purposes after the lease payment? (Round answers to the nearest dollar)
A) $0
B) $166,779
C) $227,448
D) $233,379
D
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Distinguish between a work center and a manufacturing cell.
What will be an ideal response?
Which of the following statements is true regarding dividend income?
a. Dividend income is accrued at year-end. b. Dividend income is reported on the income statement. c. Dividend income appears in the stockholders' equity section of the balance sheet. d. Dividend income is recognized by companies that own debt securities.
Austin invests $80,000 for a 20 percent interest in a partnership that has capital totaling $300,000 after admitting Austin. Which of the following is true?
A) The original partners received a bonus of $20,000. B) Austin received a bonus of $20,000. C) Austin's capital is $80,000. D) The original partners' capital in the business was $240,000 before admitting Austin.
Which component below is not one of the four main types of organizational structures discussed in the textbook?
a. Uncomplicated b. Functional c. Matrix d. Divisional