34. Assume U.S. GAAP (generally accepted accounting principles) applies unless otherwise noted.

On 1 January, a company entered into a capital lease resulting in an obligation of $10,000 being recorded on the balance sheet. The lessor's implicit interest rate was 12 percent. At the end of the first year of the lease, the cash flow from financing activities section of the lessee's statement of cash flows showed a use of cash of $1,300 applicable to the lease. The amount the company paid the lessor in the first year of the lease was closest to:

Select exactly 1 answers from the following:
A. $1,200. B. $1,300. C. $2,500. D. $10,000.
答案和详解如下！
Feedback: Correct answer: C

The Analysis and Use of Financial Statements, 3rd edition, Gerald I. White, Ashwinpaul C. Sondhi, and Dov Fried (Wiley, 2003), pp. 370

2006 Modular Level I, Vol. II, pp. 950-951

Study Session 10-44-b

calculate the effects of capital and operating leases on the financial statements and ratios of the lessees

The cash flow from financing section of the statement of cash flows contains the amortization of the capital lease obligation. The cash flow from operations section of the statement of cash flows contains the interest expense associated with the capital lease. The total of the amortization and interest expense is the lease payment:

$1,300 + ($10,000 x 0.12) = $2,500.

b

c

thanks