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

A capital lease requires rental payments of $2,000 annually. Fair value of the leased equipment at inception of the lease is $10,000 and the implicit interest rate is 12 percent. If the present value of the lease equals the fair value of the equipment at inception of the lease, the amount the lessee should record as interest expense in the second year of the lease is closest to:

A. $960.

B. $1,056.

C. $1,104.

D. $1,200.

[此贴子已经被作者于2008-11-7 13:27:28编辑过]

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

A capital lease requires rental payments of $2,000 annually. Fair value of the leased equipment at inception of the lease is $10,000 and the implicit interest rate is 12 percent. If the present value of the lease equals the fair value of the equipment at inception of the lease, the amount the lessee should record as interest expense in the second year of the lease is closest to:

A. $960.

B. $1,056.

C. $1,104.

D. $1,200.

  
Correct answer = C

"Leases and Off-Balance Sheet Debt," Gerald I. White, Ashwinpaul C. Sondhi, and Dov Fried
2008 Modular Level I, Vol. 3, pp. 521-523
Study Session 9-40-b
contrast the effects of capital and operating leases on the financial statements and ratios of the lessees and lessor
$10,000(0.12) = $1,200 interest expense in first year. $2,000 payment - $1,200 interest = $800 principal reduction. $10,000 - $800 = $9,200 balance at beginning of second year. $9,200 (0.12) = $1,104 interest expense in second year.