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On January 1, 2017, Andres Inc. signed a 6-year non-cancelable lease for a printing press. The terms of the lease called for Andres to make

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On January 1, 2017, Andres Inc. signed a 6-year non-cancelable lease for a printing press. The terms of the lease called for Andres to make annual payments of $54,291.43 at the beginning of each year, starting January 1, 2017. The printing press has an estimated useful life of 6 years and a $10,000 unguaranteed residual value. The printing press reverts back to the lessor at the end of the lease term. Andres uses the straight-line method of depreciation for all of its plant assets. Andres has an incremental borrowing rate of 12%, and the lessor's implicit rate is unknown. Required (a) Compute the present value of the minimum lease payments; round to nearest whole dollar. (b) Prepare all necessary journal entries for Andres for this lease through December 31, 2018; again you can round your entries to nearest whole dollar

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