On January 1, 2016, Madison Company signed a four-year lease requiring annual payments of $15,000 with the first payment due on January 1, 2016. The fair value of the equipment leased was $50,000. Madison's incremental borrowing rate was 6%. Actuarial information for 6% follows:
Assuming the lease qualifies as a capital lease, what amount should be recorded as leased equipment under capital leases on January 1, 2016 rounded to the nearest dollar)?

Question

On January 1, 2016, Madison Company signed a four-year lease requiring annual payments of $15,000 with the first payment due on January 1, 2016. The fair value of the equipment leased was $50,000. Madison's incremental borrowing rate was 6%. Actuarial information for 6% follows:  
Assuming the lease qualifies as a capital lease, what amount should be recorded as leased equipment under capital leases on January 1, 2016 rounded to the nearest dollar)?

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The Answer of On January 1, 2016, Madison Company signed a four-year lease requiring annual payments of $15,000 with the first payment due on January 1, 2016. The fair value of the equipment leased was $50,000. Madison's incremental borrowing rate was 6%. Actuarial information for 6% follows:  
Assuming the lease qualifies as a capital lease, what amount should be recorded as leased equipment under capital leases on January 1, 2016 rounded to the nearest dollar)?

On January 1, 2016, Madison Company Signed a Four-Year Lease