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20X1, Cole Company signed an eight-year noncancelable lease for a new machine, requiring $15,000 annual payments at the beginning of each year. has a useful
20X1, Cole Company signed an eight-year noncancelable lease for a new machine, requiring $15,000 annual payments at the beginning of each year. has a useful life of 12 years, with no salvage value. Title passes to Cole at the lease expiration date. Cole use straight-line depreciation for all of its Aggregate lease payments have a present value on January 2, 20X1, of $108,000, based on an appropriate rate of interest. For 20X1, Cole should zation expense for the leased machine at
Choice
$9,000
$13,500
$15,000
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