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On January 1, 2014, Muske Trucking Company leased a semitractor and trailer for five years. Annual payments of $28, 300 are to be made every
On January 1, 2014, Muske Trucking Company leased a semitractor and trailer for five years. Annual payments of $28, 300 are to be made every December 31 beginning December 31, 2014. Interest expense is based on a rate of 8%. The present value of the minimum lease payments is $112, 994 and has been determined to be greater than 90% of the fair market value of the asset on January 1, 2014. Muske uses straight-line depreciation on all assets. Required: Hide 1. Prepare a table similar to Exhibit 10-7 to show the five-year amortization of the lease obligation. Enter all amounts as positive numbers. If required, round all calculations and answers to the nearest dollar
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