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Kennedy Kicks leases a piece of machinery. She entered the lease on January 1, 2021 and records it as a finance lease. At the end
Kennedy Kicks leases a piece of machinery. She entered the lease on January 1, 2021 and records it as a finance lease. At the end of each of the next seven years, she will owe a lease payment of $875,000. At 10%, the present value of the lease payments is $4,260,000. Kennedy kicks uses the effective interest method of amortization. Depreciation is recorded using sum-of-the-years'-digits (no residual value). Instructions (Round to the nearest dollar.) (a) Prepare an amortization table for 2021 and 2022. (b) Prepare all of Kennedy's journal entries for 2021
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