Rick Kleckner Corporation recorded a right-of-use asset for $300,000 as a result of a finance lease on

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Rick Kleckner Corporation recorded a right-of-use asset for $300,000 as a result of a finance lease on December 31, 2024. Kleckner’s incremental borrowing rate is 8%, and the implicit rate of the lessor was not known at the commencement of the lease. Kleckner made the first lease payment of $48,337 on December 31, 2024. The lease requires eight annual payments. The equipment has a useful life of 8 years with no residual value. Prepare Kleckner’s December 31, 2025, entries.

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Intermediate Accounting

ISBN: 9781119790976

18th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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