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on January 1, 2020, Halo company signed a 10 year noncancelable lease for new equipment, requiring $20,000 annual lease payments at the beginning of each
on January 1, 2020, Halo company signed a 10 year noncancelable lease for new equipment, requiring $20,000 annual lease payments at the beginning of each year. The equipment has a useful life of 15 years, with no residual value. Title passes to Halo at the lease expiration date. At the lease commencement, Halo records a right-to-use asset and a lease liability of $126,000 based on appropriate interest rate. For 2020, Halo should record amortization expense on its right of use asset of
a. $12,600 b. $0 c. $20,000 d. $8,400
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