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On January 2, 2021, Jori Coal Co. (lessee) entered into a 5-year lease for drilling equipment. Jori accounted for the acquisition as a finance lease
On January 2, 2021, Jori Coal Co. (lessee) entered into a 5-year lease for drilling equipment. Jori accounted for the acquisition as a finance lease for $375,200, which includes a $6,000 purchase option at the end of the lease. Jori is reasonably certain to exercise the purchase option. Jori estimates that the equipments fair value will be $12,000 at the end of its 8-year life. For the year ended December 31, 2021, what amount should Jori recognize as amortization expense on the right-of-use asset?
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