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2. Holland Co. as lessee records a capital lease of machinery on January 1, 2018. The seven annual lease payments of $875,000 are made at
2. Holland Co. as lessee records a capital lease of machinery on January 1, 2018. The seven annual lease payments of $875,000 are made at the end of each year. The present value of the lease payments at 10% is $4,260,000. Holland uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value). Instructions (Round to the nearest dollar.) (a) Prepare an amortization table for 2018 and 2019. (b) Prepare all of Holland's journal entries for 2018
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