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Please answer with Excel formulas At January 1 , 2 0 2 4 , Widget World Corporation leased manufacturing equipment from Clinton Corporation under a
Please answer with Excel formulas
At January Widget World Corporation leased manufacturing equipment from Clinton Corporation under a year lease
agreement. The lease agreement specifies annual payments of $ beginning January the beginning of the lease, and on
each December thereafter through The equipment was acquired recently by Clinton at a cost of $its fair value and
was expected to have a useful life of years with no salvage value at the end of its life. Because the lease term is only years, the
asset does have an expected residual value at the end of the lease term of $ Clinton seeks a return on its lease
investments. By this arrangement, the lease is deemed to be a finance lease.
Determine the present value of the lease using Excel's PV function.
Prepare the journal entry for Widget World Corporation at the beginning of the lease on January
Prepare a partial amortization schedule for the first year of the lease.
Record the first lease payment on January
Record the amortization of the rightofuse asset on December
Indicate the amounts related to the lease reported on the yearend balance sheets and income statements.
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