Ildhorsecorporation enters into an agreement with yates rentals co. on january 1, 2018 for the purpose of leasing a machine to be used in its manufacturing operations. the following data pertain to the agreement: (a) the term of the noncancelable lease is 3 years with no renewal option. payments of $544864 are due on january 1 of each year. (b) the fair value of the machine on january 1, 2018, is $145. the machine has a remaining economic life of 10 years, with no salvage value. the machine reverts to the lessor upon the termination of the lease. (c) wildhorse depreciates all machinery it owns on a straight-line basis. (d) wildhorse’s incremental borrowing rate is 11% per year. wildhorse does not have knowledge of the 9% implicit rate used by yates. (e) immediately after signing the lease, yates finds out that wildhorse corp. is the defendant in a suit which is sufficiently material to make collectibility of future lease payments doubtful. if the present value of the future lease payments is $145 at january 1, 2018, what is the amount of the reduction in the lease liability for wildhorse corp. in the second full year of the lease if wildhorse corp. accounts for the lease as a finance lease? (rounded to the nearest dollar.)
its cash flow statement. hope this
the prices increases and the quantity decreases. this question explains the concept of supply and demand. as demand goes up, the prices go up and supply goes down.
by doing it lol (if you can)