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Business, 21.03.2020 08:07 pennygillbert
On March 31, 2021, Southwest Gas leased equipment from a supplier and agreed to pay $370,000 annually for 20 years beginning March 31, 2022. Generally accepted accounting principles require that a liability be recorded for this lease agreement for the present value of scheduled payments. Accordingly, at inception of the lease, Southwest recorded a $4,611,018 lease liability.
Required:
Determine the interest rate implicit in the lease agreement.
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On March 31, 2021, Southwest Gas leased equipment from a supplier and agreed to pay $370,000 annuall...
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