On January 2, 2021, Carla Vista, Inc. signed a 10-year noncancelable lease for a heavy duty drill press. The lease stipu

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On January 2 2021 Carla Vista Inc Signed A 10 Year Noncancelable Lease For A Heavy Duty Drill Press The Lease Stipu 1 (45.75 KiB) Viewed 11 times

On January 2, 2021, Carla Vista, Inc. signed a 10-year noncancelable lease for a heavy duty drill press. The lease stipulated annual payments of $370000 starting at the beginning of the first year, with title passing to Carla Vista at the expiration of the lease. Carla Vista treated this transaction as a finance lease. The drill press has an estimated useful life of 15 years, with no salvage value. Carla Vista uses straight-line depreciation for all of its plant assets. Aggregate lease payments were determined to have a present value of $2179016, based on implicit interest of 11%. In its 2021 income statement, what amount of interest expense should Carla Vista report from this lease transaction? $198992 $0 $217902 O $182268 Save for Later Attempts: 0 of 1 used Submit Answer