Answered

Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

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.

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.