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Winston Industries leases equipment to Ewing Inc. on January 1, 20X1: - 4 annual payments of $120,000 beginning January 1,201. - Unguaranteed residual value of

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Winston Industries leases equipment to Ewing Inc. on January 1, 20X1: - 4 annual payments of $120,000 beginning January 1,201. - Unguaranteed residual value of $5,000 \& useful life 5 years. - No transfer of ownership. No bargain purchase option. - Iimplicit interest rate 8%. - Lease qualifies as a finance lease. Ewing capitalizes $357,710 in leased equipment. What is the reported carrying value of the leased equipment in the December 31,201 financial statements? a. $257,710 b. $268,282 c. $357,710 d. $272,154

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