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Carla Vista Compamy, a machinery dealer, leased a machine to Dexter Corporation on January 1.2020. The lease is for an 8-year period and requires equal

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Carla Vista Compamy, a machinery dealer, leased a machine to Dexter Corporation on January 1.2020. The lease is for an 8-year period and requires equal annual payments of $30,080 at the beginning of each year. The first payment is received on January 1.2020. Carla Vista had parchased the machine during 2019 for $116,000. Collectibility of lease payments by Carla Vista is probable. Carla Vista set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Carla Vista at the termination of the lease. Suppose at the end of the lease term, Carla Vista receives the asset and determines that it actually has a fair value of $1,350 instead of the anticipated residual value of \$0. Record the entry to recognize the receipt of the asset for Carla Vista at the end of the lease term. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e g. 5,275.)

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