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Gold, Inc. leased equipment from Silver Company under a four-year lease requiring equal annual payments of $$430,190 which includes $10,190 as excoutry costs. The lease
Gold, Inc. leased equipment from Silver Company under a four-year lease requiring equal annual payments of $$430,190 which includes $10,190 as excoutry costs. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no residual value. If Gold, Inc.'s incremental borrowing rate is 8% and the lessor's implicit rate is not known. If the PV factor from annuity table at 8%, 4 periods is 3.57710, what is the amount recorded for the leased asset at the lease inception? O A. $1,502,382 O B. $1,538,832.65 OC. $430,190 O D. $420,000
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