The company leased two manufacturing facilities. Lease A requires 20 annual lease payments of $200,000 beginning on January 1, 2019. Lease B also is for 20 years, beginning January 1, 2019. Terms of the lease require 17 annual lease payments of $220,000 beginning on January 1, 2022. Generally accepted accounting principles require both leases to be recorded as liabilities for the present value of the scheduled payments. Assume that a 10% interest rate properly reflects the time value of money for the lease obligations

the present value of the lease obligation for lease A will be $1,702,712.74 while the present value of lease B will be $1,764,741.73

Step-by-step explanation:

the present value of annual lease payment will be determined by discounting the total amount to be received from lease payment over years.

for lease A  , Pv =   A

                         =   $200,000( 1 - (1+0.1)) / 0.1 =  $1,702,712.74

for lease B , Pv =   $220,000( 1 - (1+0.1)) / 0.1  =  $1,764,741.73

the amount to be dicloased in the balance sheet at 31 december, 2018

answer: when you burn wood, the carbon reacts with the oxygen in the air to create ash and smoke. that is a permanent change you cannot undo that.

step-by-step explanation:

the simplified form is

step-by-step explanation:

we want to simplify the expression,

let us change the middle bar to a normal division sign to obtain,

we multiply the first fraction by the reciprocal of the second fraction to obtain,

we factor to obtain,

we cancel the common factors to get,

we simplify to get,

the correct answer is b