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On January 1,2020 , a machine was purchased for $394,000 by Kingbird Leasing Co. The machine is expected to have a 10 -year life with
On January 1,2020 , a machine was purchased for $394,000 by Kingbird Leasing Co. The machine is expected to have a 10 -year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to Blossom Inc. for 3 years on January 2020 , with annual rent payments of $70,280 due at the beginning of each year, starting January 1,2020 . The machine is expected to have a residual value at the end of the lease term of $259,000, though this amount is unguaranteed. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a1) What is the lease classification for the lessor? eTextbook and Media List of Accounts Attempts: unlimited (a2) The parts of this question must be completed in order. This part will be available when you complete the part above. (a3) The parts of this question must be completed in order. This part will be available when you complete the part above. (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above
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