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View Policies Show Attempt History Current Attempt in Progress Sunland Leasing Company leases a new machine to Carla Vista Corporation. The machine has a cost

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Sunland Leasing Company leases a new machine to Carla Vista Corporation. The machine has a cost of $65,000 and fair value of
$94,000. Under the 3-year, non-cancelable contract, Carla Vista will receive title to the machine at the end of the lease. The machine
has a 3-year useful life and no residual value. The lease was signed on January 1,2025. Sunland expects to earn an 8% return on its
investment, and this implicit rate is known by Carla Vista. The annual rentals are payable on each December 31, beginning December
31,2025.
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Prepare the journal entry at commencement of the lease for Sunland Your answer is incorrect.
Prepare the journal entry at commencement of the lease for Sunland. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter \( O \) for the amounts.)
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