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Terms of a lease agreement and related facts were as follows: The lease asset had a retail cash selling price of $ 1 1 4
Terms of a lease agreement and related facts were as follows:
The lease asset had a retail cash selling price of $ Its useful life was six years with no residual value straightline depreciation
Annual lease payments at the beginning of each year were $ beginning January
Lessors implicit rate when calculating annual rental payments was
Costs of $ for legal fees for the lease execution were the responsibility of the lessor.
Required:
Prepare the appropriate entries for the lessor to record the lease, the initial payment at its beginning, and at the December fiscal yearend under each of the following three independent assumptions:
The lease term is three years and the lessor paid $ to acquire the asset operating lease
The lease term is six years and the lessor paid $ to acquire the asset salestype lease Also assume that adjusting the lease receivable net investment by initial direct costs reduces the effective rate of interest to
The lease term is six years and the lessor paid $ to acquire the asset salestype lease
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