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At January 1 , 2 0 2 4 , Sunset Company leased restaurant equipment from Cedar Corporation under a five - year lease agreement in
At January Sunset Company leased restaurant equipment from Cedar Corporation under a fiveyear lease agreement in a finance lease. The lease agreement specifies annual payments of $ beginning January the beginning of the lease, and at each December thereafter through The equipment was acquired recently by Cedar and was expected to have a useful life of six years with no salvage value at the end of its life. Cedar seeks a return on its lease investments. The amount of lease liability reported on December balance sheet by Sunset would be:
tablePresent Value of Ordinary Annuity of $Present Value of Annuity Due of $Period
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