Refer to the following lease amortization schedule

Subject:AccountingPrice: Bought3

Share With

Refer to the following lease amortization schedule. The five payments are made annually starting with the beginning of the lease. A $1,900 purchase option is reasonably certain to be exercised at the end of the five-year lease. The asset has an expected economic life of eight years.

 

Lease

PaymentCash

PaymentEffective

InterestDecrease in

BalanceOutstanding

Balance         45,130 19,600 ??  ??  35,530 29,600 1,776  7,824  27,706 39,600 1,385  8,215  19,492 49,600 975  8,625  10,866 59,600 ??  ??  ?? 61,900 90  1,810  0