question archive Eastern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2021
Subject:AccountingPrice:2.87 Bought7
Other information:
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Lease term
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5 years
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Annual payments
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$79,000 on January 1 each year
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Life of asset
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5 years
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Implicit interest rate
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7%
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PV, annuity due, 5 periods, 7%
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4.3872
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PV, ordinary annuity, 5 periods, 7%
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4.1002
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Hi-Tech's cost of the equipment
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$346,589
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Purchased 7 times