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please show all work Kawhi Consulting leased machinery to Red Inc. on July 1, 2018. The lease was recorded as a sales type lease. The
please show all work
Kawhi Consulting leased machinery to Red Inc. on July 1, 2018. The lease was recorded as a sales type lease. The present value of the lease payments discounted at 8% was $452,256. Ten annual lease payments of $81,038 are due each July 1 beginning July 1, 2018. Kawhi had manufactured the equipment at a cost of $350,000. The total increase in earnings (pretax) on Kawhis December 31, 2018, income statement would be?
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