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Business, 27.08.2019 03:20 sairaanwar67

On december 31, 2005, neal, inc. leased machinery with a fair value of $105,000 from frey rentals co. the agreement is a 6-year noncancelable lease requiring annual payments of $20,000 beginning december 31, 2005. the lease is appropriately accounted for by neal as a capital lease. neal's incremental borrowing rate is 11%. neal knows the interest rate implicit in the lease payments is 10%.• the present value of an annuity due of $1 for 6 years at 10% is 4.7908.• the present value of an annuity due of $1 for 6 years at 11% is 4.6959.in its december 31, 2005 balance sheet, neal should report a lease liability of

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