BUS-A 312 #11

BUS-A 312 #11 - Assuming all payments are made on time, the...

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On December 31, 2007, Pool Corporation leased a ship from Renn Company for an eight-year period expiring  December 30, 2015. Equal annual payments of $200,000 are due on December 31 of each year, beginning with  December 31, 2007. The lease is properly classified as a capital lease on Pool's books. The present value at  December 31, 2007 of the eight lease payments over the lease term discounted at 10% is $1,173,685. 
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Unformatted text preview: Assuming all payments are made on time, the amount that should be reported by Pool Corporation as the total obligation under capital leases on its December 31, 2008 balance sheet is a. $1,091,054. b. $1,000,159. c. $871,054. d. $1,200,000....
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This note was uploaded on 03/31/2010 for the course BUS-A 5290 taught by Professor Astill during the Spring '10 term at Indiana.

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