Multiple Choice
Bottomly Industries has entered a capital lease with a financial institution for a warehouse on a small parcel of land. If the interest rate being charged is 12%, compounded every 2 months, and Bottomly will be making payments of $24,083 at the beginning of every two months [six times a year] for five years, what is the historical cost value of the asset that will appear on the Company's balance sheet?
A) $86,814
B) $193,993
C) $325,667
D) $539,375
E) $550,162
Correct Answer:
Verified
Correct Answer:
Verified
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