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On January 2, 2018, Farnsleigh Corporation leased equipment. The lease agreement specified payments of $17,000 per year (payable each year on January 2, starting in

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On January 2, 2018, Farnsleigh Corporation leased equipment. The lease agreement specified payments of $17,000 per year (payable each year on January 2, starting in 2019) for nine years. The market rate of interest for lease transactions of this type is 8 percent compounded annually. Prepare the journal entry for the initiation of the capital lease on January 2, 2018. DR_LEASED EQUIP CR_LEASE LIABILIT NA NA NA

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