On june 30 2013 blue inc. leased a machine from big leasing, Ask an Expert

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On June 30, 2013, Blue, Inc., leased a machine from Big Leasing Corporation. The lease agreement qualifies as a capital lease and calls for Blue to make semiannual lease payments of $281,454 over a three-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2013. Blue's incremental borrowing rate is 10%, the same rate Big uses to find out lease payment amounts. Depreciation is recorded on a straight-line basis at the end of each fiscal year. What would be the pretax amounts related to the lease that Blue would report in its balance sheet at December 31, 2013?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M939265

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