单选题
Use the following data for a company leasing a machine with a capital
lease:
The lease period is ten years.
The
lease payments are $ 2980.59 at the end of each year.
The firm
will own the asset at the end of the lease term but the salvage value will be
negligible. 8.5 % is the firm' s incremental borrowing rate.
8%
is the implicit lease rate.
If the company uses straight-line
depreciation, the first year' s reported lease expense is:
- A. $ 2635.
- B. $ 2980.
- C. $ 3600.
【正确答案】
C
【答案解析】The reported annual lease expense for a capital lease is the depreciation of the asset value plus the annual interest on the remaining lease liability. We must use the lower rate, the implicit lease rate of 8%, to calculate the present value of the 10 lease payments, which is $ 20000. The annual interest is calculated using the 8% rate and the $ 20000 present value of the lease liability at the initiation of the lease.
Depreciation (operating expense) =[*] =$ 20000
Interest expense(nonoperating expense) = $ 20000×0.08 = $1600
Total reported lease expense = $ 3600