On January 1, 2006, West Co. entered into a ten-year lease for a manufacturing plant. The annual minimum lease payments are $100,000. In the notes to the December 31, 2006 financial statements, what amounts of subsequent years’ lease payments should be disclosed?
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|
Amount for appropriate required period |
Aggregate amount for the period thereafter |
|
|
a. |
$100,000 |
$0 |
|
b. |
$300,000 |
$500,000 |
|
c. |
$500,000 |
$300,000 |
|
d. |
$500,000 |
$0 |