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please help On January 1, 2017, Bubble Corporation signed a five-year noncancelable lease to obtain a bubble machine. The terms of the lease called for
please help On January 1, 2017, Bubble Corporation signed a five-year noncancelable lease to obtain a bubble machine. The terms of the lease called for Bubble to make annual payments of $90,000 at the beginning of each year for 5 years. The equipment has an estimated useful life of 7 years and no salvage value. Bubbles effective interest rate is 10%. The fair value on Jan. 1, 2017 of the asset is $500,000. What is the present value of the minimum lease payments of Bubbles lease? $55,883 $375,287 $481,973 $345,701
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