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1.On January 1, Garcia Supply leased a truck for a four year period, at which time possession of the truck will revert back to the lessor. Annual lease payments are $10,000 due on December 31 of each year, calculated by the lessor using a 5% discount rate. Negotiations led to Garcia guaranteeing a $36,000 residual value at the end of the lease term. Garcia estimates that the residual value after four years will be $35,000. What is the amount to be added to the right of use asset and lease liability under the residual value guarantee?
stegner inc. reported net income of 130000 for the year ended december 31 2008. the following items were included on
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Lane included the entire $90,000 in its 2007 income tax return. What amount should Lane report in its 2007 income statement for subscriptions revenue?
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