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a. Costs of negotiating and consummating the completed lease transaction incurred by the lessor were $4,332. b. The retail cash selling price of the leased
a. | Costs of negotiating and consummating the completed lease transaction incurred by the lessor were $4,332. |
b. | The retail cash selling price of the leased asset was $525,000. Its useful life was three years with no residual value. |
c. | Collectibility of the lease payments by the lessor was reasonably predictable and there were no costs to the lessor that were yet to be incurred. |
d. | The lease term is three years and the lessor paid $525,000 to acquire the asset (direct financing lease). |
e. | Annual lease payments at the beginning of each year were $200,000. |
f. | Lessor |
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