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Natick Industries leased high - tech instruments from Framingham Leasing on January 1 , 2 0 2 4 . Natick has the option to renew
Natick Industries leased hightech instruments from Framingham Leasing on January Natick has the option to renew the lease at the end of two years for an additional three years. Natick is subject to a $ penalty after two years if it fails to renew the lease. Framingham Leasing purchased the equipment from Waltham Machines at a cost of $
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
Related Information:
Lease term years quarterly periods
Lease renewal option for an additional years quarterly periods
Quarterly lease payments $ at January and at March June September and December thereafter
Economic life of asset years
Interest rate charged by the lessor
Required:
Prepare appropriate entries for Natick Industries from the beginning of the lease through March Appropriate adjusting entries are made quarterly.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Round your intermediate calculations and final answers to the nearest whole dollar.
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