On january 1 2016 luke inc leased equipment signing a, Ask an Expert

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On January 1, 2016, Luke, Inc. leased equipment, signing a five-year lease that requires five payments of $40,000 due on January 1 of each year with the first payment due January 1, 2016. Luke accounted for the lease as a capital lease.

Using a rate of 9%, Luke determined the present value on January 1, 2016, to be $169,589. What is the amount of the long-term lease obligation that Luke should report on its December 31, 2017 balance sheet?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92796790

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