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YOUR Company leases a machine from MY Company on July 1 , 2 0 x 1 . Lease payments of $ 1 4 , 8
YOUR Company leases a machine from MY Company on July x Lease payments of $ are due each July beginning July x The lease qualifies as a finance lease for YOUR Company and a salestype lease for MY Company. The incremental borrowing rate for YOUR Company is The lessor's implicit rate is The carrying value on the books of MY Company is $The lease term is years. The useful life of the machine is years. The fair value of the machine at the inception of the lease is $ The expected residual value at the end of years is $ and at the end of years is $ The lessee guarantees $ of the salvage value.YOUR Company capitalized the lease at that value, $How much interest expense will YOUR company report for x
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