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Problem 2 On January 1, 2020 BIGCARMAKER (BCM) entered into a lease agreement with BIGMACHINEMAKER (BMM) for 3 AIO machines (machine described in Problem 1
Problem 2 On January 1, 2020 BIGCARMAKER (BCM) entered into a lease agreement with BIGMACHINEMAKER (BMM) for 3 AIO machines (machine described in Problem 1 above). The terms of the lease are as follows: Lease Term: 12 years Annual Lease Payment: $308,659.54 Lease Payment Date: December 31 of each year of the lease Residual Value (per machine): $125,000, not guaranteed by BCM Implied Interest Rate: 8% (known by BCM) Prepare an amortization schedule for BCM for this lease
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