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Ivanhoe Corporation enters into an agreement with Flint Rentals Co . on January 1 , 2 0 2 5 to lease a machine to be
Ivanhoe Corporation enters into an agreement with Flint Rentals Co on January to lease a machine to be used in its
manufacturing operations. The following data pertain to the agreement:
a The term of the noncancelable lease is years with no renewal option. Payments of $ are due on January of each year.
b The fair value of the machine on January is $ The machine has a remaining economic life of years, with no
salvage value. The machine reverts to the lessor upon the termination of the lease.
c Ivanhoe depreciates all machinery it owns on a straightline basis.
d Ivanhoe's incremental borrowing rate is per year. Ivanhoe does not know the implicit rate used by Flint.
If Flint records this lease as a salestype lease, what amount would be recorded as Lease Receivable at the inception of the lease?
$
$
$
$
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