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Sandhill Leasing Company leases a new machine to Wildhorse Corporation. The machine has a cost of $ 6 5 , 0 0 0 and fair
Sandhill Leasing Company leases a new machine to Wildhorse Corporation. The machine has a cost of $ and fair value of $ Under the year, noncancelable contract, Wildhorse will receive title to the machine at the end of the lease. The machine has a year useful life and no residual value. The lease was signed on January Sandhill expects to earn an return on its investment, and this implicit rate is known by Wildhorse. The annual rentals are payable on each December beginning December a Prepare an amortization schedule that would be suitable for both the lessor and the lessee and that covers all the years involved. b Prepare the journal entry at commencement of the lease for Sandhill. c Prepare the journal entry at commencement of the lease for Wildhorse. d Prepare the journal entry at commencement of the lease for Wildhorse, assuming Wildhorse does not know Sandhill's implicit rate Wildhorses incremental borrowing rate is and Wildhorse incurs initial direct costs of $
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