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On January 1, 2011, Holbrook Company leased a building under a 3-year operating lease. The annual rental payments are $68,000 on January 1, 2011, the
On January 1, 2011, Holbrook Company leased a building under a 3-year operating lease. The annual rental payments are $68,000 on January 1, 2011, the inception fo the lease, and $50,000 January 1 of 2012 and 2013. Holbrook made structural modifications to the building costing $90,000 before occupying the building. The useful life to the building and the modifications is 30 years with no expected residual value. Required: Prepare the appropriate journal entries for Holbrook Company for 2011. Holbrook's fiscal year is the calendar year and the coompany uses straight-line depreciation
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