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Company Inc. enters into a 5-year finance lease at the beginning of 2020. The annual lease payment is $17,200 (payable at the end of each
Company Inc. enters into a 5-year finance lease at the beginning of 2020. The annual lease payment is $17,200 (payable at the end of each year) for a total of $86,000 over the lease term. The rate implicit in the lease is 4%. No initial direct costs are incurred. How much interest expense should be recognized in the year 2021?
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