Chapter 6 – Factors Related to Total Tenant Payment and ...
The lease agreement qualifies as a capital lease and calls for Blue to make semiannual lease payments of $281,454 over a three-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2018. Blue’s incremental borrowing rate is 10%, the same rate Big uses to calculate lease payment amounts. ................
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