statement and journal entry:

- 3 yr lease

- $100 market value and 10 yr useful life

- The lease, signed on December 31, 2003, specifies that there is no title transfer or bargain purchase option at the end of the lease on December 31, 2006

- guarantees the entire $50,000 residual value on December 31, 2006

- lease payments at $25,106 (first payment due December 31,2004)

- doesnt know the implicit rate

- borrowing rate is 12%

- straight-line depreciation