Business, 02.07.2019 02:30 araminaara691

On january 1, rosewater company leased a computer for 4 years at a monthly rent of $80, payable at the end of each month. due to the rate of technical change, the computer is expected to become obsolete within 5 years. at the inception of the lease, the computer was retailing for $3,450. had rosewater chosen to purchase the computer instead of leasing it, they could have borrowed the funds at 10%. at a 10% interest rate, the present value of the lease payments is $3,154. rosewater does not know the rate implicit in the lease. for the month of january, rosewater should report (to the closest dollar) interest expense of

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On january 1, rosewater company leased a computer for 4 years at a monthly rent of $80, payable at t...

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