ACC 222 (ACC222)

ACC 222 Exam 2 Practice- Northern Virginia Community College Last document update:   ago

Durney Co. recorded a right-of-use asset of $800,000 in a ten-year finance lease. The interest rate charged by the lessor was 10%. The balance in the right-of-use asset after two years will be: $648,000! $640,000 $880,000 $968,000 In a finance lease, the lessee amortizes its right of use asset on a straight line basis. In this case, amortization is $800,000 / 10 years, or $80,000 per year. So, after 2 years, the balance will be $800,000 – 160,000 = $640,000. Cook the Books is the lessee in a l...

ACC 222 Exam 2 Practice- Northern Virginia Community College Last document update:   ago

Durney Co. recorded a right-of-use asset of $800,000 in a ten-year finance lease. The interest rate charged by the lessor was 10%. The balance in the right-of-use asset after two years will be: $648,000! $640,000 $880,000 $968,000 In a finance lease, the lessee amortizes its right of use asset on a straight line basis. In this case, amortization is $800,000 / 10 years, or $80,000 per year. So, after 2 years, the balance will be $800,000 – 160,000 = $640,000. Cook the Books is the lessee in a l...

ACC 222 Exam 2 Practice- Northern Virginia Community College Last document update:   ago

Durney Co. recorded a right-of-use asset of $800,000 in a ten-year finance lease. The interest rate charged by the lessor was 10%. The balance in the right-of-use asset after two years will be: $648,000! $640,000 $880,000 $968,000 In a finance lease, the lessee amortizes its right of use asset on a straight line basis. In this case, amortization is $800,000 / 10 years, or $80,000 per year. So, after 2 years, the balance will be $800,000 – 160,000 = $640,000. Cook the Books is the lessee in a l...