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please show the work in details specifying what type of lease is this? On January 1, 2020, Crimson Industries leased seyhnjal computers under a three-year
please show the work in details specifying what type of lease is this?
On January 1, 2020, Crimson Industries leased seyhnjal computers under a three-year lease agreement from Computer World Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for 6 rent payment of $16,500 each, payable semiannually on June 30 , and December 31 each year. The computers were purchased by Computer World at a cost of $90,000 and were expected to have a useful life of 5 years with no residual value. Both firms record amortization and depreciation semiannually. Required: (Round to the nearest dollar) Prepare the appropriate entries for the lessee from the beginning of the lease through the end of 2020 Step by Step Solution
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