单选题
Assume the following capital lease:
Present value
(PV) of lease payments at 10 percent is $ 25000.
The leased
asset is depreciated straight line over 5 years.
The lease
payment is $ 6000.
The first payment of $ 6000 is to be paid at
the end of the year.
On a before tax basis, the income reported
under capital lease compared with that reported under an operating lease for the
first year will be:
- A. $1500.
- B. - $ 2500.
- C. - $1500.