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Kingston Corporation leases equipment from Falls Company on January 1 , 2 0 2 5 . The lease agreement does not transfer ownership, contain a
Kingston Corporation leases equipment from Falls Company on January The lease agreement does not transfer ownership, contain a bargain purchase option, and is not a specialized asset. It covers years of the equipments year useful life, and the present value of the lease payment is less than of the fair value of the asset leased. The annual lease payment is $ at the beginning of each year, and Kingstons incremental borrowing rate is which is the same as the lessors implicit rate.
Prepare all the necessary journal entries for Falls Company the lessor for assuming the equipment is carried at a cost of $
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