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1- On January 1, 2018, Nate Staheli Corporation leased farm equipment from Angie Staheli Company. Angie Staheli Company purchased the equipment from Mary Esther Corporation

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1- On January 1, 2018, Nate Staheli Corporation leased farm equipment from Angie Staheli Company. Angie Staheli Company purchased the equipment from Mary Esther Corporation at a cost of $718,618. Assume the lease includes six annual payments beginning January 1, 2018, and at each December 31 thereafter through 2022. At the end of the six-year lease term ending December 31, 2023, the equipment is expected to have a residual value of $100,000. The estimated useful life of the equipment is seven years. a- If the six lease payments are of an equal amount, what payment would provide Angie b- c- d- Staheli Company with a return of 10% Prepare an amortization schedule for the Lessor? Prepare journal entries for the Lessee and the Lessor as of January 1, 2018. Prepare journal entry for the Lessor as of December 31, 2023. Explain how this would be different if there was not a guaranteed residual value of $100,000, rather there was bargain purchase option of $100,000. 2

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