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Qustion 9
This is a multiple answer question meaning the answer could be one or more of the choices below.
On January 1,2023, Moore Company leased equipment from Abell Company. The lease was for three of the equipment's five-year useful life. Abell acquired the asset for $431,213, which is considered its fair value, and uses an 8% implicit rate for transactions of this type. The present value of the lease payments is $357,710. Annual lease payments are $100,000, with the first payment due on January 1,2023, the first day of the lease. When Abell receives the first lease payment from Moore, Abell should (round to whole dollars):
A. debit lease payable for $79,383
B. debit interest expense for $20,617
c. credit cash for $100,000
D. credit lease revenue for $79,383
E. debit cash for $100,000
F. credit deferred lease revenue for $100,000
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