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On January 1, 2020, AAA leased a building to BBB for a ten-year term at an annual rental of $200,000. At inception of the lease,
On January 1, 2020, AAA leased a building to BBB for a ten-year term at an annual rental of
$200,000. At inception of the lease, AAA received $700,000 in cash covering the first two years'
rent of $400,000 and a security deposit of $300,000. Prepare the journal entries AAA needs to
record related to this transaction.
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