On January 1, 2011, Geary Corporation leased equipment under a capital lease. The lease agreement specified payments of $37,000 per year (payable each year on December 31, starting at the end of 2011) for 8 years. The market rate of interest for lease transactions of this type is 8 percent compounded annually.

Question

On January 1, 2011, Geary Corporation leased equipment under a capital lease. The lease agreement specified payments of $37,000 per year (payable each year on December 31, starting at the end of 2011) for 8 years. The market rate of interest for lease transactions of this type is 8 percent compounded annually.
On January 1, 2011, Geary Corporation leased equipment under a capital lease. The lease agreement specified payments of $37,000 per year (payable each year on December 31, starting at the end of 2011) for 8 years. The market rate of interest for lease transactions of this type is 8 percent compounded annually.

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The Answer of On January 1, 2011, Geary Corporation leased equipment under a capital lease. The lease agreement specified payments of $37,000 per year (payable each year on December 31, starting at the end of 2011) for 8 years. The market rate of interest for lease transactions of this type is 8 percent compounded annually.

On January 1, 2011, Geary Corporation Leased Equipment Under a Capital