Wildhorse Corporation leases new equipment on December 31, 2020. The lease transfers ownership of the equipment to Wildhorse at the end of the lease. The present value of the lease payments is $190,000. After recording this lease, Wildhorse has assets of $1,800,000, liabilities of $1,100,000, and stockholders equity of $700,000.

Prepare the entry to record the lease. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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Compute the debt to assets ratio at year-end.

Debt to assets ratio

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