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Business, 27.08.2019 02:30 lorrainelopez

On january 1, 2004, harrow co. as lessee signed a 5-year noncancelable equipment lease with annual payments of $100,000 beginning december 31, 2004. harrow treated this transaction as a capital lease. the five lease payments have a present value of $379,000 at january 1, 2004 based on interest of 10%. what amount should harrow report as interest expense for the year ending december 31, 2004?

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