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On January 1 , Year 6 , Magnus Co. leased a machine to Fisher Co. The machine was acquired by Magnus on January 1 ,

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On January 1 , Year 6 , Magnus Co. leased a machine to Fisher Co. The machine was acquired by Magnus on January 1 , Year 1 , for $200,000. The useful life of the machine was 20 years with no salvage value, and it was depreciated by Magnus using the straight-line method. The lease term is 10 years, and the present value of the lease payments to be made over the lease term was $90,000. Annual equal lease payments of $14,647 are payable at the end of each year starting December 31 , Year 6 . The discount rate for the lease is 10%. Fisher depreciates all of its assets using the straight-line method. Assume that both the remaining economic life of the machine and the salvage value did not change as a result of the lease. For each of the following independent situations, enter in the designated cells below the appropriate amounts for the carrying amount of the right-of-use asset that should be reported in Fisher's December 31 , Year 6 , balance sheet. Enter all amounts as positive values. Round all amounts to the nearest whole number. If no entry is necessary, enter a zero (0) or leave the cell blank

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