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Required:A. For this lease:1. The lease payment computed by the lessor is $____________________. 2. The amount the lessee should record as an asset is $________________.
Required:A. For this lease:1. The lease payment computed by the lessor is $____________________. 2. The amount the lessee should record as an asset is $________________. 3. What type of lease for the lessee and lessor(Explain)B. How much interest (revenue or expense) should be recognized at the end of year 1, Year 2, and Year 3 by the:1. Lessor (Lola Co.)2. Lessee (Paco Co.)C. How much amortization expense (Paco Co.) on each year must be recorded?
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