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Ragnar Company leased a machine from Lagatha Leasing Company.The lease is for 4 years.The li nning of the year, beginning on January 1, 2019.The lease is non-cancelable. Ragnar's incremental borrowing rate is 8%.Lagatha's earnings rate is 6%, but Ragnar doesnotknow Lagatha's rate.There is anunguaranteedresidual value of $10,000 at the end of year 4.The returned equipment was worth $7,500.

Amortize the Lease Liability for Ragnar