On December 31,2014,Behring Enterprises leased equipment from R & R Equipment Rental.Pertinent lease transaction data are as follows:
•The estimated seven-year useful equipment life coincides with the lease term.
•The first of the seven equal annual $300,000 lease payments was paid on December 31,2014.
•R & R's implicit interest rate of 12 percent is known to Behring.
•Behring's incremental borrowing rate is 14 percent.
•Present values of an annuity of 1 in advance for seven periods are 5.11 at 12 percent and 4.89 at 14 percent.
Behring should record the equipment on the books at

Question

Quizplus · Accepted Answer

The Answer of On December 31,2014,Behring Enterprises leased equipment from R & R Equipment Rental.Pertinent lease transaction data are as follows:
•The estimated seven-year useful equipment life coincides with the lease term.
•The first of the seven equal annual $300,000 lease payments was paid on December 31,2014.
•R & R's implicit interest rate of 12 percent is known to Behring.
•Behring's incremental borrowing rate is 14 percent.
•Present values of an annuity of 1 in advance for seven periods are 5.11 at 12 percent and 4.89 at 14 percent.
Behring should record the equipment on the books at

On December 31,2014,Behring Enterprises Leased Equipment from R & R