Business, 25.04.2020 03:15 nnnnnhamilton7572

On January 2, 2021, Crane, Inc. signed a 10-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $290000 starting at the beginning of the first year, with title passing to Crane at the expiration of the lease. Crane treated this transaction as a finance lease. The drill press has an estimated useful life of 15 years, with no salvage value. Crane uses straight-line amortization for all of its plant assets. Aggregate lease payments were determined to have a present value of $1861121, based on implicit interest of 9%. In its 2021 income statement, what amount of amortization expense should Crane report from this lease transaction?

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On January 2, 2021, Crane, Inc. signed a 10-year noncancelable lease for a heavy duty drill press. T...

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