B borman records the following liability amounts at

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Unformatted text preview: 00 Total Payment Expenses to Be Charged to Income Statement Lease Expense Amortization Interest $10,000 $ 7,986.00 $ 3,194.40 10,000 7,986.00 2,649.95 10,000 7,986.00 2,061.95 10,000 7,986.00 1,426.90 10,000 7,986.00 736.80 $50,000 $39,930.00 $10,070.00 Principal Balance $39,930.00 33,124.40 25,774.35 17,836.30 9,263.20 — Total Expenses $11,180.40 10,635.95 10,047.95 9,412.90 8,722.80 $50,000.00 e. The student should note that reported expenses exceed the cash flows in earlier years, while the reverse occurs in later years. Problem 2 a. A lease should be classified as a capital lease when it...
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This document was uploaded on 02/27/2014 for the course FMIS 3644 at University of Minnesota Duluth.

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