Before signing a lease, a company reports total assets of $500,000 and total liabilities of $300,000. The company then signs a 30-month lease for equipment with payments of $922.21 each month. The lease payments have a present value of $25,000. After recording the inception of the lease, the company would report which of the following?

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Before signing a lease, a company reports total assets of $500,000 and total liabilities of $300,000. The company then signs a 30-month lease for equipment with payments of $922.21 each month. The lease payments have a present value of $25,000. After recording the inception of the lease, the company would report which of the following?

A) Total assets of $527,666.30, and total liabilities of $325,000.00.

B) Total assets of $525,000.00, and total liabilities of $327,666.30.

C) Total assets of $527,666.30, and total liabilities of $327,666.30.

D) Total assets of $525,000.00, and total liabilities of $325,000.00.

Answer: D

We hope you have got the correct answer to your question “Before signing a lease, a company reports total assets of $500,000 and total liabilities of $300,000. The company then signs a 30-month lease for equipment with payments of $922.21 each month. The lease payments have a present value of $25,000. After recording the inception of the lease, the company would report which of the following?”, which was part of Accounting MCQs & Answers. Thanks for choosing us.

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