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Operating Lease Capitalization: Requirement: Determine lease classification and record journal entries. Question: A company enters into an operating lease agreement with annual lease payments of
·Operating Lease Capitalization:
- Requirement: Determine lease classification and record journal entries.
- Question: A company enters into an operating lease agreement with annual lease payments of $12,000 for 5 years. If the company's incremental borrowing rate is 8%, should the lease be capitalized, and if so, what is the initial lease liability?
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Cornerstones Of Managerial Accounting
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
4th Edition
978-0538473460, 0538473460
