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Blossom Corporation leases equipment from Falls Company on January 1 , 2 0 2 5 . The lease agreement does not transfer ownership, contain a
Blossom Corporation leases equipment from Falls Company on January The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers years of the equipment's year useful life, and the present value of the lease payments is less than of the fair value of the asset leased. The annual lease payment is $ at the beginning of each year, and Blossom's incremental borrowing rate is which is the same as the lessor's implicit rate. Prepare all the necessary journal entries for Falls Company the lessor for assuming the equipment is carried at a cost of $List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.
Blossom Corporation leases equipment from Falls Company on January The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers years of the equipment's year useful life, and the present value of the lease payments is less than of the fair value of the asset leased. The annual lease payment is $ at the beginning of each year, and Blossom's incremental borrowing rate is which is the same as the lessor's implicit rate.
Prepare all the necessary journal entries for Falls Company the lessor for assuming the equipment is carried at a cost of $List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.
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