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Parent leased equipment to sub at the beginning of the year under the sales type lease. Sub made five $10,000 payments and economic life for
Parent leased equipment to sub at the beginning of the year under the sales type lease. Sub made five $10,000 payments and economic life for equipment was 5 years with no salvage value. Cost of the equipment was $30,000. Use a discount rate of 7% and Journalize all of the elimination entries for 5 years.
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