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What will be the effect of the lease on ward earnings

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Reference no: EM132010121

Question - Ward Products leased office space under a 10 year agreement. The lease specified 120 monthly payments of $5.000 each. In addition to the first rent payment, Ward paid a $1000,000 advance payment at the lease inception, What will be the effect of the lease on Ward's earnings for the first year?

1) $60.000

2) $160.000

3) $100.000

4) $50.000

6) $70.000

Reference no: EM132010121

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