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Carla Vista Leasing Company leases a new machine to Sandhill Corporation. The machine has a cost of $ 6 5 , 0 0 0 and

Carla Vista Leasing Company leases a new machine to Sandhill Corporation. The machine has a cost of $65,000 and fair value of $89,000. Under the 3-year, non-cancelable contract, Sandhill will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1,2025. Carla Vista expects to earn an 8% return on its investment, and this implicit rate is known by Sandhill. The annual rentals are payable on each December 31, beginning December 31,2025.
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(b)
Your answer is correct.
Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final ansiwers to 0 decimal places eg.5,275,
Date
Rent Receipt/ Payment
Interest (8%) Revenue/
Expense
Reduction of Principal
Receivat
11?25
$
$
40
1231?25
34535
1231?26
When 4927
1231?27
31977
eTextbook and Media
List of Accounts
Attempts; 2 of 3 used
(c)
Prepare the journal entry at commencement of the lease for Carla Vista. (Q/st all debilt entries before credit entries, Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.
Date
Account Titles and Explanation
Debit
Credit
11?25
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