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On December 31, 2019, Marin Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Marin to make annual
On December 31, 2019, Marin Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Marin to make annual payments of \$8,566 at the beginning of each year of the lease, starting December 31. 2019. The machine has an estimated useful life of 6 years and a $4,500 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Marin uses the straight-line method of depreciation for all of its plant assets. Marin's incremental borrowing rate is 4%, and the lessor's implicit rate is unknown. Click here to view factor tables. Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the foctor table provided and round finol answer to 0 decimal places e. . 5,275.) Present value of the lease payments eTextbook and Media Prepare all necessary journal entries for Marin for this lease through December 31, 2020. (Record journal entries in the order presented in the problem. Credit occount titles are outomatically indented when amount is entered. Do not indent manually. Round onswers to 0 decimat olaces e.e. 5.275 .]
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