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XYZ Company leased equipment to West Corporation under a lease agreement that qualifies as a finance lease to West but not as a result of

XYZ Company leased equipment to West Corporation under a lease agreement that qualifies as a finance lease to West but not as a result of a bargain purchase option or a title transfer. The present value of the lease payments is $740,000. The expected economic life of the asset isseven years. The lease term is fiveyears. Using the straight-line method, what would West record as annual amortization?

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