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USE THE FOLLOWING FACTS FOR THIS QUIZLET: Annual payments = $51,000 Purchased for / Fair Market Value of property at inception = $349,500 Payments
USE THE FOLLOWING FACTS FOR THIS QUIZLET: Annual payments = $51,000 Purchased for / Fair Market Value of property at inception = $349,500 Payments begin 1/1/X3 Lease term = 6 years Estimated economic life = 6 years Annual interest rate = 2% Year end is December 31 The lease is non-cancelable. There are no options to purchase or renew. The leased asset reverts back to the leasing company at the end of the lease. The leasing company routinely lease this type of property.
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
17th edition
007802577X, 978-0078025778
