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Crane Company, a machinery dealer, leased a machine to Cullumber Corporation on January 1 , 2 0 2 5 . The lease is for an

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Crane Company, a machinery dealer, leased a machine to Cullumber Corporation on January 1,2025. The lease is for an 8-year period and requires equal annual payments of $29,017 at the beginning of each year. The first payment is received on January 1,2025. Crane had purchased the machine during 2024 for $119,000. Collectibility of lease payments by Crane is probable. Crane 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 Crane at the termination of the lease.
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(a)
Your answer is incorrect.
Compute the amount of the lease receivable. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places e.8.5,275.)
Amount of the lease receivable
Prepare all necessary journal entries for Crane for 2025.(List all debit entries before credit entries. Credit account titles are automatically 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. Round answers to 0 decimal places e.g.5,275. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
1/1/25
(To record the lease)
(To record the first lease payment)
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