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Question 27 12 pts Gopher Company leased an asset from Harry Company on May 1, 2019, with payments of $54,000 due each May 1 for
Question 27 12 pts Gopher Company leased an asset from Harry Company on May 1, 2019, with payments of $54,000 due each May 1 for five years, starting on May 1, 2019. At the end of six years, Gopher has a purchase option to buy the asset for $32,000, which is significantly less than the expected fair value at that time, leaving all parties reasonably certain that Gopher will exercise the purchase option. With these lease payments and Harry's implicit lease rate of 8%, the right-of-use asset is originally calculated to be $289,772. The asset is expected to last for nine years with no salvage value at that time. Gopher's fiscal year ends on December 31, and Gopher only records asset amortization/depreciation at the end of each fiscal year. Make Gopher's journal entries for this lease for the following dates (clearly labeling each entry by date): May 1, 2019, De er 31, 2019, May 1, 2020. HTML Editor - TE = Txx = = BTU A
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