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Federated Fabrications leased a tooling machine on January 1 , 2 0 2 4 , for a three - year period ending December 3 1
Federated Fabrications leased a tooling machine on January for a threeyear period ending December
The lease agreement specified annual payments of $ beginning with the first payment at the beginning of the lease, and each December through
The company had the option to purchase the machine on December for $ when its fair value was expected to be $ a sufficient difference that exercise seems reasonably certain.
The machine's estimated useful life was six years with no salvage value. Federated was aware that the lessors implicit rate of return was
Required:
Record the entry to reflect the change from a leased asset to ownership of that asset.
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