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ABC company least equipment to best corporation under Elise agreement that qualifies as a direct finance lease. The cost of asset is $120,000. The lease
ABC company least equipment to best corporation under Elise agreement that qualifies as a direct finance lease. The cost of asset is $120,000. The lease contains a bargain purchase option that is effective at the end of the fifth year. The economic life of the asset is 10 years. The least term is five years. Using straight line method what would best record as annual depreciation,?A. $24,000 B. $12,200 C. $12,000 D. $11,800
A. $24,000
B. $12,200
C. $12,000
D. $11,800
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