At the inception of the lease, the present value of an annuity due for seven years was 4.15. What amount should Connor capitalize as leased equipment?
A. $400,000
B. $1,660,000
C. $2,060,000
D. $2,800,000
Answer:B
At the inception of the lease, the present value of an annuity due for seven years was 4.15. What amount should Connor capitalize as leased equipment?
A. $400,000 B. $1,660,000 C. $2,060,000 D. $2,800,000