On January 1, 2014, Watson Company signed a four-year lease requiring annual payments of $45,000, with the first payment due on January 1, 2014. Watson's incremental borrowing rate was 7%. Actuarial information for 7% follows:

Assuming the lease qualifies as a capital lease, what amount should be recorded as leased equipment under capital leases on January 1, 2014 (rounded to the nearest dollar)?

Question

On January 1, 2014, Watson Company signed a four-year lease requiring annual payments of $45,000, with the first payment due on January 1, 2014. Watson's incremental borrowing rate was 7%. Actuarial information for 7% follows:

Assuming the lease qualifies as a capital lease, what amount should be recorded as leased equipment under capital leases on January 1, 2014 (rounded to the nearest dollar)?

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The Answer of On January 1, 2014, Watson Company signed a four-year lease requiring annual payments of $45,000, with the first payment due on January 1, 2014. Watson's incremental borrowing rate was 7%. Actuarial information for 7% follows:

Assuming the lease qualifies as a capital lease, what amount should be recorded as leased equipment under capital leases on January 1, 2014 (rounded to the nearest dollar)?

On January 1, 2014, Watson Company Signed a Four-Year Lease