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Please use Excel On January 1, Year 1, Marco Company leased equipment from Wilson Corp. Lease payments of $200,000 are to be made every January
Please use Excel
On January 1, Year 1, Marco Company leased equipment from Wilson Corp. Lease payments of $200,000 are to be made every January 1 for 10 years. Title does not pass at the end of the lease term, and the lease does not include a bargain purchase option. The lease is non- cancelable. Additional Facts: . . . The lease includes a guaranteed residual value of $40,000. The estimated useful life of the equipment on January 1, Year 1, is 25 years. The rate implicit in the lease is unknown to Marco. Marco's incremental borrowing rate is 8%. The fair value of the equipment is $1,800,000 on January 1, Year 1. . . 1. Record the journal entries for Marco on January 1, Year 1. 2. Record the journal entries for Marco on January 1, Year 2. (ignore end-of-year accruals) 3. Record the journal entries for Marco on January 1, Year 3. (ignore end-of-year accruals)Step by Step Solution
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