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Brooks Company leases a machine from Chalon Company on 1/1/23. Given: Asset FMV $100,000 Asset Book Value $85,000 January 1 payments $20,274 Guaranteed Salvage Value
Brooks Company leases a machine from Chalon Company on 1/1/23. Given: Asset FMV $100,000 Asset Book Value $85,000 January 1 payments $20,274 Guaranteed Salvage Value $10,000 Lessee expected salvage value $6,000 Implicit and incremental rates 5% Five-year lease; five-year asset FINANCE LEASE Compute Brooks' 12/31/23 Right of Use account balance Select one: O a $75,024.80 O b. $94,005.68 O c. $78,776.04 O d. $73,734.66 O e. $76,238.44
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