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Assume that a company leases equipment for a 5-year period under a capital lease and agrees to pay an annual rental of $16,000 at the
Assume that a company leases equipment for a 5-year period under a capital lease and agrees to pay an annual rental of $16,000 at the end of each year. If the present value of the lease payments is $59,200, the entry to record the leasing transaction would include:
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