(Answered) Question - on january 1 2006 abc company leased equipment

Accounting

Question - On January 1, 2006, ABC Company leased equipment from Universal Leasing Company. The terms of the lease require annual payments of $40,000 beginning on December 31, 2006. The annual interest rate on the lease is 10%. Assume the lease qualifies as a capital lease. In its 2006 statement of cash flows, ABC Company reported a cash outflow from operating activities of $32,086 related to this lease.

Calculate the number of years ABC Company has leased this equipment from Universal Leasing Company. Enter your answer as a number (i.e., 39). Do not use decimals or type the word years after your answer.

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