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Tire Corporation leased a machine to Rims Company on January 1 , 2 0 X 9 , for a 5 - year lease. The machine
Tire Corporation leased a machine to Rims Company on January X for a year lease. The machine has an economic life of years, a residual value at the
end of lease term of $ and a residual value at the end of economic life of zero. The lease contains a purchase option that allows Rims to purchase the
leased machine at the end of the lease term for $ Equal lease payments of $ are made on each January with the first payment made on January
XThe applicable interest rate to both the lessee and the lessor is For the year ended December X Rims should report lease liabilities as:
Multiple Choice
$
$
$
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