[Solved] How to recognize and journalize a capital

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How to recognize and journalize a capital lease? Company can buy the machine for 35 million but choosing to lease instead. Lease terms: -10 year

How to recognize and journalize a capital lease?

Company can buy the machine for 35 million but choosing to lease instead.

Lease terms:

-10 year lease term

-15 year useful life

-500,000 a year payments

-implicit rate is 8%

-option to buy the machine for 1000 when lease ends

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