Answered

Westonci.ca is the Q&A platform that connects you with experts who provide accurate and detailed answers. Get immediate and reliable solutions to your questions from a knowledgeable community of professionals on our platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

On January 1, 2018, Gibson Corporation entered into a four-year operating lease. The payments were as follows: $20,000 for 2018, $18,000 for 2019, $16,000 for 2020, and $14,000 for 2021. What is the correct amount of total lease expense for 2019

Sagot :

Parrain

Based on accounting principles, the correct amount for total lease expense in 2019 is $17,000.

Why is this the correct amount?

Accounting principles state that lease payments must be recorded as an equal amount over the years of the lease.

The total lease payment is:

= 20,000 + 18,000 + 16,000 + 14,000

= $68,000

Annual payment is:

= 68,000 / 4

= $17,000

Find out more on lease payments at https://brainly.com/question/5563107.

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.