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Required information ABC Corp. manufactured equipment and then leased the equipment to XYZ Corp. on January 1, 2021. Additional details: Annual payments Lease term $30,000
Required information ABC Corp. manufactured equipment and then leased the equipment to XYZ Corp. on January 1, 2021. Additional details: Annual payments Lease term $30,000 12 years Useful life of asset Implicit interest rate Present value of lease payments Lease classification. 16 years 8.0% $244,169 Finance lease The first payment occurs on January 1, 2021, and at each December 31 thereafter. The lease does not transfer ownership at lease-end, and there is no bargain purchase option. (Round final answers to the nearest whole dollar.) Use the information above to answer the questions below. The journal entry recorded by XYZ Corp. at inception of the lease includes a: (Click to select debit to Lease Receivable for $244,169 credit to Lease Payable for $30,000 credit to Lease Payable for $244,169 debit to Lease Receivable for $30,000
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