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Jasper Co. bought equipment and immediately leased it to Randy Company on May 1, 2021.At that time the colectibility of the leasepayments was not probable.
Jasper Co. bought equipment and immediately leased it to Randy Company on May 1, 2021.At that time the colectibility of the leasepayments was not probable. The lease expires on May 1, 2022. Randy could have bought the equipment from Jasper for $5,600,000 instead of leasing it. Jasper's accounting records showed a book value for the equipment on May 1, 2021, of $4,900,000. Jasper's depreciation on the equipment in 2021 was $630,000. During 2021, Randy paid $1,260,000 in rentals to Jasper
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